Carried Interest
定义
Carried interest (carry) is the share of a fund’s profits, typically 20 percent, that its managers receive after returning investors’ capital, usually above a hurdle rate.
它在融资中如何出现
Carry is why VCs need large outcomes: a fund earns most of its money from a few investments big enough to generate profits worth 20 percent.
常见问题
What is the standard VC fee structure?
Commonly “2 and 20”: a 2 percent annual management fee on committed capital plus 20 percent carried interest on profits.
How does carry shape investor behavior?
It pushes funds toward companies with billion-dollar potential, since modest exits barely move fund-level profits.