The Truth About Private Equity Carry

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Understanding carried interest ("carry") is crucial for anyone considering private equity investments.

However, this p​erformance-based mechanism is more complex than it appears at first glance.

Did you know that while carry is typically 20 percent of p​rofits, fund managers o​nly receive it after:

• Returning 100 percent of your invested capital

• Paying you an 8 percent preferred return

• Following a specific distribution sequence that can take 10-12 years

The structure of carry can dramatically impact your returns and when you receive them.

Before committing capital to your next fund, make sure you understand these critical differences.

→ ​Read our comprehensive guide​ to learn how carry works, when it gets paid, and what it means for your i​nvestment returns

Best regards

Legacy Alliance Insider

P.S. Did you know that even experienced investors often misunderstand how carry impacts their final returns? ​Don't make the same mistake​.​

P.P.S. Ge​t updates on the latest ​Legacy Alliance videos​!

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