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Note 4 - Carried interest and investment performance plans         2004  £m  2003  £m  Charge for investment performance plans 34  12  Carried interest 6  –    40  12  As is normal in the private equity industry, the Group offers its investment executives the opportunity to participate in the returns from successful investments. The two principal methods of achieving this are the Group’s investment performance plans (“IPP”) and carried interest arrangements. Under the IPP, payments are made on the basis of realised capital profits on investments pooled by team and by year. Payments are made if the realised profits and valuation of remaining investments within a pool indicate that a performance hurdle will be exceeded. Payments are accrued as the increase in asset value is recognised.   2004  £m  2003  £m  Charge for IPP - realised 8  6  Charge for IPP - unrealised 26  6    34  12  Under the carried interest arrangements, participants purchase a carried interest in future investments within a pool before the investments are made. This entitles them to receive a proportion of the cash flows from those investments in excess of a performance hurdle. The accounts show the change in value during the year of all outstanding carried interest held by participants in investments held at 31 March 2004.   2004  £m  2003  £m  Carried interest - realised –  –  Carried interest - unrealised 6  –    6  –  In the year to March 2004, participants purchased a carried interest in respect of all first investments to be made by the Group over the two year period to 31 March 2006.