Carried Interest Valuation

Carried Interest Valuation is a valuation process that determines how much the value of an investment will increase if it is continuously held for a fixed period.

Carried Interest Valuation is a valuation process that determines how much the value of an investment will increase if it is continuously held for a fixed period. Its base case assumes that Carried Interest Class, the securities in which these funds invest, remain the same and do not change. Interest is a management fee paid out each year by active funds to investment managers, who then pay out these earnings as compensation to their principal shareholders. The higher the interest earned per year, the lower will be the annual management fee paid out by the fund to the investor.


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