About Carried Interest Agreements, Penalties, and Payout

A carried interest agreement is an arrangement in a joint venture in which one or more partners (consenting stakeholders) agree to carry the interest for one or more other partners (nonconsenting stakeholders). In Oracle Joint Venture Management, you can create a carried interest agreement for a joint venture to perform the following tasks:

• Distribute transactions for costs and revenue to the consenting stakeholders in a carried interest agreement.
• Track the costs, revenue, and balances consenting stakeholders carry for nonconsenting stakeholders in a joint venture.
• Calculate and track the penalties associated with a carried interest agreement.
• Report payout balances to stakeholders.
• Close carried interest agreements after payout has occurred.

Creating a carried interest agreement in Joint Venture Management eliminates the need for a joint venture operator to manually track carried costs, revenue, balances, and penalties. It enables timely, accurate processing of carried interest agreements until they reach their end when payout is reached.