Insights and Analysis

Carried interest schemes for asset managers

18 May 2026

The continued rise of private capital has reshaped global investment markets. Capital flows have diversified across asset classes—from real estate and infrastructure to private credit and private equity—driving increasingly sophisticated fund structures and incentive arrangements.

Against this backdrop, carried interest and co‑investment mechanisms have evolved well beyond traditional models. Fund managers now face heightened tax, regulatory and reputational considerations when structuring performance-based returns, whether through classic or bespoke carry arrangements. In this environment, thoughtful tax design is not simply a matter of efficiency, but a critical element in mitigating risk, maintaining alignment, and achieving sustainable returns.

Take a look at our toolkit which highlights the main tax structuring products available for carried interest payments to fund managers in the major fund jurisdictions - France, Germany, Luxembourg, the Netherlands, Spain, the UK, the U.S., Singapore and Hong Kong. Don’t hesitate to contact our private capital tax partners for more information and tailor-made insight.

Authored by Alexander Fortuin, Juan Garicano, Heiko Gemmel, Xenia Legendre, Gérard Neiens, Elliot Weston, Lauren Clarke, Jessica Millett, Thomas Kim, and Michael Wong.

References

Hogan Lovells (Luxembourg) LLP is registered with the Luxembourg bar.