Full Carry

See: Carry. And just think: the star of Ace Ventura after he finishes a large meal.

The notion of "full" here is a Thing. That is, for many private investment firms, especially in venture capital, there is a time-hurdle that gets placed in the term or deal sheets. That is, if the fund compounds in value above, say, 18% a year, then it received 25% or full carry. If it compounds at less than that rate, then it only gets 20% as carry, or partial carry.

Why is this format in place? Well, venture deals often take decades to really work out, and the time value of money is a Thing. So investors, who would always have the option of just putting their money in a publicly traded index fund which has compounded at historical rates of, say, 10% a year, might just do that instead of bearing the much higher risk (and real risk of negative 100% returns) of rolling the dice in VentureLand.