Carried Interest White Paper

Assessing Current and New Methodologies on Valuation

February 2024

Alternative investment firms, including private equity, have often used simple methodologies for describing carried interest values with the shorthand of carry dollars-at-work. While this approach often works well for like-for-like funds, as firms expand into other investment strategies with differing timelines and return expectations, it becomes difficult to compare values. At a minimum, a more nuanced approach is required to account for carry differences across strategies.