Carry (GP/LP Structure)
Carry, or carried interest, is the GP's share of fund profits above a hurdle rate, typically 20% of returns after investors receive their preferred return and capital back.
| Carry Structure | Standard Terms |
| GP profit share | 20% of profits above hurdle |
| LP profit share | 80% of profits |
| Hurdle rate | 8% to 10% preferred return to LPs |
| Catch-up provision | GP receives portion to reach 20% overall |
| Clawback obligation | Return excess if later losses occur |
| Carry Example | Distribution |
| Total profit | AED 10M |
| LP preferred return (8%) | AED 4M (on AED 50M invested) |
| Remaining profit | AED 6M |
| GP carry (20%) | AED 1.2M |
| LP additional | AED 4.8M |
| Total GP economics | Carry plus 1% to 2% management fee |
Related Terms
RERA licensed advisors
Free expert advice
Get property recommendations matched to your goals. No pressure. No commitment.