Catch-up

Catch-up interest is additional interest owed due to deferred payments. It ensures that investors receive the total return expected, compensating for the delay in payment.

Key Takeaways

  • Catch-up interest compensates for deferred payments.
  • Ensures investors receive expected returns.
  • Common in private equity and real estate.
  • Adjusts for payment delays.

Get a guided tour of the Flow platform.