The promote — also called carried interest — is the general partner’s share of profits above a hurdle, earned for sourcing and executing the deal. After investors receive their capital back and a preferred return, the sponsor "is promoted" into a larger share of the remaining upside.
The promote is the sponsor’s incentive and the top of the equity waterfall. A typical structure might split profits favoring investors up to a return hurdle, then shift more to the sponsor beyond it — aligning the GP’s payday with investor outcomes.
See how EagleCap structures multifamily investments for passive investors.
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