Where You Can Use Carried Interest Ownership Definitions

To maximize your implementation of a carried interest agreement, it’s important to understand where you can use a carried interest ownership definition in a joint venture. You can include a carried interest ownership definition in the following joint venture configurations:

• Joint venture definition

  You can use a carried interest ownership definition as the default ownership definition for a joint venture.

• Ownership definition assignment rule

  You can associate a carried interest ownership definition to an assignment rule. An assignment rule enables you to associate the carried interest ownership definition to transactions in a specific account or set of accounts identified as distributable for a joint venture.

• Overhead method

  If a joint venture is set up to calculate and distribute overhead charges, you can set up an overhead method to distribute the amount according to a carried interest ownership definition.

• Partner contribution request

  You can associate a carried interest ownership definition to a partner contribution request that’s based on a forecasted gross amount. You can also associate a carried interest ownership definition to a partner request that’s based on open joint venture distribution amounts. This enables you to base the request on distributions associated to a particular carried interest ownership definition.