Skip to main content

What's the difference between setup fees and carry?

Setup fees are paid upfront (one-time cost); carry is paid on exit (only if the deal profits). Setup fees = fixed cost; carry = performance fee.

These are the two fee types you'll encounter on Wealt. They work differently and serve different purposes:

  • Setup fee = the cost of entry (like a transaction fee). It pays for the infrastructure that makes your investment possible.

  • Carry = a success fee. It aligns Wealt's interests with yours; if you don't profit, Wealt doesn't profit from carry.

Example: On a $10,000 investment with 6% setup fee and 20% carry:

  • You always pay: $600 setup fee

  • If the deal returns 3x: you pay $4,000 carry (20% of $20,000 profit)

  • If the deal returns 1x or less, you pay $0 carry

Did this answer your question?