CARRIED INTEREST DESCRIPTION: Information about the features of the CARRIED INTEREST calculation.
This term is defined as “Information about the features of the CARRIED INTEREST calculation, such as the HURDLE RATE, CRYSTALLIZATION PERIOD, and LOSS CARRYFORWARDS. ” in the GIPS 2020 Exposure Draft.
Key Points about This Term
- This term is fundamentally not new and mainly relates to what information to show in a description of ‘Carried Interest‘ when disclosing fee information in GIPS Reports.
- It provides certain information that describes one of the types of fees that can be charged by General Partners of Firms and Asset Owners that utilize the General and Limited Partnership structure, that is, ‘Carried Interest’.
- Fun Fact – It appears six (6) times in the Exposure Draft, excluding that in the definitions section.
- Possible Evolution under new Standards – Likely here to stay!