What is carry?

Carried interest, or “carry” for short, is the percentage of investment profits that the lead investor receives as compensation.

Here's an example: Blake, a notable angel investor, decides to lead a syndicate. The syndicate investors agree to invest £200k in the deal and pay him 13% carry. If the investment is successful, the syndicate investors first receive their £200k, after which every pound of the syndicate’s profit is split 87% to the syndicate investors and 13% to Blake.