Carried Interest
Noun · Startup & VC
Definitions
The share of a fund's investment profits paid to its managers after returning capital and typically clearing a hurdle structure. In venture, carry is a major part of how successful fund managers are compensated.
In plain English: The portion of investment profits that fund managers earn as compensation.
Example: "Junior associates cared about salary now, but partners cared about carried interest over the life of the fund."