Thomas J. Brennan

Carried Interest Calculator (Multiple Assets)

The java applet below calculates the present value of a carried interest in a portfolio of several assets using the methodology developed by Michael S. Knoll in The Taxation of Private Equity Carried Interests: Estimating the Revenue Effects of Taxing Profits Interests as Ordinary Income, 50 Wm. & Mary L. Rev. 115 (2008).

The applet was programmed and designed by Tom Brennan, and he alone is responsible for any errors in the implementation of Professor Knoll's methods.

You may vary the values in the upper left panel according to your specifications for the carry calculation, and you may vary the characteristics of the underlying assets in the right-hand panel. Once you have specified a desired set of parameters, press the "Calculate Value of Carry" button in the lower left panel to calculate the present value of the carried interest.