This page is continued from Ownership >>>> Interest >>>> Various Types of Interest:

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carried interest:

1. The share of any profits produced by a partnership’s investment, paid to the general partner as compensation for managing the investment.  *  The general partner often contributes little or no capital to acquire the investment but gains an interest in it by providing time and skill.  The general partner’s interest in the property is “carried” with the property until it is liquidated.

2. Oil & gas. In an oil~and~gas lease, a fractional interest that is free of some or all costs of exploring, drilling, and completing the well.  *  The owner of a carried lease may earn royalties on production but does not have a working interest, at least until all costs are recouped by the working-interest owner or owners, and often until some multiple of those costs are paid. [1]

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