Hurdle Rate

Definición

A hurdle rate is the minimum return a fund must deliver to investors before managers earn carried interest, commonly around 8 percent in private funds.

Cómo aparece en el fundraising

Hurdles align incentives: GPs profit only after LPs receive their capital plus the preferred return.

Preguntas frecuentes

Do venture funds always have hurdle rates?

They are more universal in private equity; many VC funds have no hurdle, though LP pressure has made them more common.

How does a hurdle affect founder interactions?

Indirectly: funds behind on their hurdle late in life may push portfolio companies harder toward exits.

Pon este término en práctica

Las definiciones solo ganan negociaciones cuando estás en una. Encuentra los inversores que financian tu etapa y empieza la conversación.

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