Quote:
Originally posted by Cletus Miller
1) That's true, but the manager will get the cap gains rate on any gains on their invested money. The manager is also "risking" that the carried interest will be zero--not that they get nothing, because the manager gets 2% off the top, no matter what else happens. However, isn't "risk" more about the risk of losing your investment, which isn't an issue for carried interest?
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Part of the 2% covers the manager's expenses, so it's actually somewhat lower than that.
