The "promote" is a share in profits above and beyond the sponsor's proportional share of investment. This is often structured as a performance incentive. For example, in an 80/20 equity split, that 20% could legitimately be called the "promote." In other words, after all, investors have received their initial capital back and preferred return, the remainder of the profits is split, and 20% goes to the sponsor as a "promote."
However, one should note that the specific terms and structure of the promote can vary widely based on the deal, the market, and the agreement between the investors and the sponsors. It can be structured in any way by the promoter, from a simple split after certain return thresholds are made to a tiered structure that pays different splits at different levels of return or any number of other more complex arrangements.
