Carried Interest & Performance Fees

Audience

Fund Controllers, Auditors, ManCos/AIFMs employees, central administration employees. Generally, this course is ideal for finance professionals seeking to deepen their understanding of incentive compensation structures in investment management.

Training Objectives

• To understand the main model of performance fees and related concepts and parameters (high-water mark, hurdle rate, crystallization, equalization, fulcrum fees, etc.);

• To have a complete, clear, and concrete understanding of carried interest functioning and models (European vs US Models, Ownership vs Service Models, etc.);

• To understand the accounting treatments of performance fees and carried interests;

• To design efficient controls on performance fees and carried interests computation;

• To gain expertise on complex and more elaborated performance fees and carried interests models;

• To gain insights into the reconciliation of share classes, essential for navigating complex investment scenarios;

• To understand the main regulatory requirements;

• To have an overview of main tax impacts.

Content

Performance fees

• Key Concepts & Definitions (high-water mark, hurdle rate, crystallization, benchmark, fulcrum fees, etc.);

• Regulation Requirements.

• Deep dive on equalization methods;

• Accounting treatments & Controls process;

• Parity Check;

• Real case studies;

• Common industry errors & red flags.

Carried interests

• Key concepts & definitions (preferred return, catch-up, impact of exit value and/or time effects, etc.);

• Main protection mechanisms (escrow account, clawback)

• European vs US Models;

• Ownership vs Service Models;

• Accounting treatments & controls process;

• Impact of leverage practices;

• Real cases examples of complex models;

• Common industry errors & red flags

• Tax regime

Main Facilitators

Partner - Consulting

Senior Manager

Senior Consultant

Want to take your skills to the next level?

Duration 4h

Date 11/03/2027 13:30 – 17:30

Language English/French

Format Presential / Hybrid

Certificate Completion certificate

Price €740 (VAT excl.)