Fund structureLP / GPLegal & compliance
Carried interest (carry)
GP’s share of fund profits after LPs receive preferred return and catch-up per the waterfall.
Carry aligns GP economics with outcomes but is defined by waterfall mechanics — European vs. American, catch-up, clawback, and hurdle rates all matter.
Fund CFOs model carry at the fund and sometimes deal level for fairness, tax, and LP transparency.