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Carried Interest

Carried Interest
DEFINITION
Carried Interest is payments made to Investment Managers even when managers do not contribute to the partnership.  Private Equity and Hedge Funds.  Also called Carried Interest Income.  20 to 25 percent of the funds profit.  Also a performance fee to reward the manager for growth of the funds as an incentive to enhance there performance.  Compensating Private Equity and Hedge Fund managers.  These managers of have a tax loophole that allows them to pay lower taxes than the average American citizen.  

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