Carried Interest (Promote)

Carried interest (also called the promote) is the disproportionate share of profits that a general partner or sponsor earns above their capital contribution once investors have received their preferred return, typically structured as 20-30% of profits above the hurdle rate.

Carried Interest (Promote) is a key concept that affects property valuation, financing decisions, and investment returns in the triple net lease market. Understanding Carried Interest (Promote) helps investors make informed acquisition and management decisions.

Carried Interest (Promote) directly influences how commercial properties are valued, financed, and traded. Changes in Carried Interest (Promote) can impact cap rates, NOI calculations, and overall investment performance for net lease properties.

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General and for orientation only. How any of this applies to a specific property, lease or transaction is a question for your own advisors. Ask about a property.