# What is Carried Interest?

The share of a fund's profits, commonly about 20 percent, that goes to the fund's managers after investors get their money back. Often called carry, it pays the managers only when the fund makes money for its investors.

## In real work

Because carried interest was 20 percent, the managers kept $10 million of the fund's $50 million profit, and the limited partners received the rest.

## Related terms

- [SAFE](https://prompthausapp.com/learn/safe.md)
- [Valuation Cap](https://prompthausapp.com/learn/valuation-cap.md)
- [Dilution](https://prompthausapp.com/learn/dilution.md)
- [Pro Rata](https://prompthausapp.com/learn/pro-rata.md)
- [Limited Partner](https://prompthausapp.com/learn/limited-partner.md)

## How is this different from Googling it?

Google gives a definition. Prompthaus pairs each term with how it shows up in standups, PRs, prompts, and design reviews. Then it quizzes you until the word sticks. One term a day on iPhone.

- Category: Venture
- HTML: https://prompthausapp.com/learn/carried-interest
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