Carry (short for "carried interest") is a performance-based fee that aligns Wealt's incentives with yours. Wealt only earns carry when you make money.
How carry works:
You invest $10,000 in a deal with 20% carry
The deal exists at 3x → your shares are worth $30,000
Profit = $30,000 − $10,000 = $20,000
Carry = $20,000 × 20% = $4,000
You receive = $30,000 − $4,000 = $26,000
Key points:
Carry is only charged on profits; if the deal loses money or breaks even, no carry is charged
The carry percentage is fixed at the time of investment and shown on the deal page
Carry is deducted from exit proceeds before distribution to you
Why does carry exist?
Carry is standard across venture capital, private equity, and fund management. It incentivises the deal operator to maximise returns - they only profit if you profit.
"2 and 20" model
You may have heard of the "2 and 20" fee structure in traditional funds (2% annual management fee + 20% carry).
Wealt's model is simpler:
setup fee (one-time) + carry (at exit).
There are typically no annual management fees on individual deals.