Global Definitions Database

Performance fee

Also known as incentive fees, promote or carried interest, are fees charged by investment advisors, or managers, after a predetermined investment p...

Carried interest

A re-allocation of profits from the investor's capital account to the investment manager capital account based on the ability of the latter par...

Waterfall calculation

When returns are paid to more than one party in a vehicle, the order of priority for cash flows of these is set out in the waterfall calculation.