Income Incentive Fee

Income incentive fee is a performance fee based on a defined measure of investment income, usually subject to a hurdle and other contractual provisions.

Why this matters to income investors

A fee tied to income can absorb part of a BDC’s earnings as the portfolio performs.

How to use income incentive fee in your research

Read the fee formula and its base in the latest filing. Calculate what the charge takes from assets or earnings, then check whether waivers are temporary and whether the remaining income supports distributions.

This material is general education and information, not individualized investment, tax, or legal advice.