Valuation of carried interests is the process of determining the monetary value of profit-sharing arrangements in investment funds, typically held by fund managers or general partners. This valuation considers factors like fund performance, projected cash flows, market conditions, and associated risks.

Carried interests are often tied to complex financial structures, making accurate valuation essential for tax reporting, regulatory compliance, and financial planning. This assessment helps stakeholders understand the true value of their share in a fund's profits, ensuring fair treatment and informed decision-making in transactions and tax filings.