CVC Capital Partners generates its revenue and profits using the standard, highly lucrative financial model typical of elite global private equity and alternative asset management firms. The firm's income is primarily divided into two main streams: management fees and performance fees (often referred to as carried interest). First, CVC charges a fixed management fee, typically ranging from 1% to 2% annually, on the tens of billions of euros in committed capital or assets under management (AUM) across its various private equity, secondaries, credit, and infrastructure funds. This provides a massive, predictable, and recurring stream of revenue that covers operational expenses and salaries. Second, the firm earns carried interest, which represents a share of the profits generated by the successful exits of investments. Usually, once an investment fund returns the initial capital plus a predetermined hurdle rate to its limited partners (investors like pension funds and sovereign wealth funds), CVC takes approximately 20% of all subsequent profits. Additionally, the firm may earn transaction, advisory, and monitoring fees charged directly to the portfolio companies it acquires, further supplementing its substantial corporate income.