What is ‘Incentive Distribution Rights – IDRs’
The general partner of a limited partnership receives an increasing proportion of the additional distributable cash flow generated by the partnership as a result of these provisions. This happens along with increases in the per-unit distributions to the limited partners. This share of increased distributable cash flow is normally valued at 2 percent, but it may reach higher amounts such as 20 percent or even 50% in certain cases.
Explaining ‘Incentive Distribution Rights – IDRs’
It is anticipated that these rights will encourage the general partner to increase distributions to limited partners at a quick pace. According to the industry standard, incentive distribution rights are calculated based on quarterly distribution data.
Further Reading
- De Gruyter Studies in Islamic Economics, Finance and Business – www.degruyter.com [PDF]
- Improvement of Village Productive Economy Through Village Funds Financing – www.ejournal.aibpm.org [PDF]
- Long-term changes in Serengeti-Mara wildebeest and land cover: pastoralism, population, or policies? – www.pnas.org [PDF]
- Foreign direct investment and economic growth: Cointegration techniques – search.proquest.com [PDF]
- Exploring the Entrepreneurial Motivations and Barriers of Agripreneurs in Brunei Darussalam – www.igi-global.com [PDF]
