It stands for general fund manager; a partner or party (as to a fund, mutual fund, private equity fund) that is responsible for managing the against a fee. A fund’s manager receives a portion of the profit made on the sale of an asset/ investment (carried interest or carry), which constitutes the major portion of the fund manager’s overall compensation. This portion is made a deal-by-deal basis or on a fund-by-fund basis. Profits are typically divided according to a certain ratio between the general fund manager (general fund manager partner), the investors, and the limited partners.

In certain cases (e.g., private equity funds), compensation does not accrue immediately, but rather when overall earnings exceed a threshold (a predetermined yield, or the so-called hurdle rate). Otherwise, no carried interest is paid.