incentive fee
[ɪnˈsentɪv fiː]
nounpl: incentive fees
taxa de incentivo
1. A fee paid to a fund manager or investment professional based on the performance of the investment portfolio, typically charged as a percentage of profits earned above a certain benchmark or threshold
The hedge fund charges a 2% management fee plus a 20% incentive fee on profits above the benchmark return.
O fundo de hedge cobra uma taxa de administração de 2% mais uma taxa de incentivo de 20% sobre lucros acima do retorno de referência.
2. A bonus or additional compensation structure designed to align the interests of service providers with the performance outcomes desired by clients
The consulting firm offered an incentive fee structure to reward successful project completion ahead of schedule.
A empresa de consultoria ofereceu uma estrutura de taxa de incentivo para recompensar a conclusão bem-sucedida do projeto antecipadamente.
Incentive fees are a standard practice in the finance industry, particularly in hedge funds, private equity, and investment management in both the US and Brazil. In the US, they are often called 'carried interest' or '20% carry.' In Brazil, this model has become increasingly common as the investment management industry has modernized, though traditional flat-fee models remain prevalent in some sectors. The term reflects a global shift toward performance-based compensation in financial services.
Look up more words on Fala2Me
The free English-Portuguese dictionary with real Brazilian accents, NYC slang, conjugator and more
Open Fala2Me →