This publication by K&L Gates and K&L Gates Straits Law LLC focuses on carried interest and co-investment plans in Asia’s private funds sector. These plans, common in the U.S., are gaining traction among Asia-based fund managers, offering benefits like talent retention and alignment of interests. The article discusses the structure, key terms, and tax implications of these plans, highlighting differences between equity and contractual arrangements. It covers participant funding options, vesting conditions, and regulatory considerations across various jurisdictions. Ultimately, effective planning in these areas is essential for managers to incentivize teams and drive growth in a competitive environment.