Carry pool
Last updated
Quick Answer
The carry pool is the portion of a fund's carried interest set aside for allocation among the management company's team.1
What it is
Carry arrives at the general partner as a single entitlement and is then divided among individuals, usually expressed in points. That second division is governed by the management company's own documents rather than by the fund's limited partnership agreement, and it is far less standardised than the LP-facing economics.1
Operational context
What good looks like
Why It Matters
The pool is where fund-level carry becomes an individual's compensation, and because it is governed by the management company's own documents rather than by the limited partnership agreement, it is far less standardised.1
Frequently Asked Questions
What is Carry pool in venture capital?
Carry arrives at the general partner as a single entitlement and is then divided among individuals, usually expressed in points. That second division is governed by the management company's own documents rather than by the fund's limited partnership agreement, and it is far less standardised than...
Why is Carry pool important for startups?
Understanding Carry pool is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
Sources & References
- 1.ilpa-principles-3 — ILPA Private Equity Principles 3.0 (2019)ILPA Private Equity Principles 3.0 (2019)ILPA(The carry pool is the portion of a fund's carried interest set aside for allocation among the management company's team.)primary · T1 · gp-compensation · structure
Newsletter
CarryBeast Brief
Carry math, waterfall tiers, and incentive design. Every Tuesday.
CarryBeast Brief
The weekly brief on carry and fund economics
Weekly analysis of waterfall structures, promote splits, and incentive design across private funds. Every Tuesday, free.
Archstone
Run your fund like an institution.