People who operate private equity funds can receive very high levels of compensation if the fund is

Question:

People who operate private equity funds can receive very high levels of compensation if the fund is able to sell its portfolio firms for a much higher price than what it paid for and invested in them. This return that is paid to the operators of private equity funds is called:

a. Dividend payments.

b. Earned income.

c. Fixed compensation.

d. Carried interest.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

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