Glossary
Carry Pool
The pool of carried interest distributed among a VC fund's partners and key team — typically 20% of fund profits above the hurdle rate.
By Amit Tyagi, Fitoor Capital · AletheiaAI Glossary
Definition
Carry Pool is the share of fund profits that flows to the VC fund's partners and key team members — typically 20% of net profits above an 8% hurdle rate. The pool is distributed across the GP team according to internal allocation rules.
Standard structure: investors (LPs) get their capital back plus an 8% return ('hurdle'), then the remaining profits are split 80% to LPs and 20% to GPs (the 'carry').
India Context
Indian VC firms in 2026 follow standard 2-and-20 economics (2% annual management fee, 20% carry). Carry pool distribution within firms is private — typically weighted toward founding partners and senior partners with longer track records. Junior partners often receive 5-15% of the pool; founding partners 30-50%.
Example
A ₹500Cr fund returns ₹2,000Cr total after fees and expenses. Capital returned to LPs: ₹500Cr. Hurdle (8% annual over 7 years): ~₹350Cr. Remaining profit ₹1,150Cr split 80/20: LPs get additional ₹920Cr; GP carry pool = ₹230Cr. Distributed across 5 partners according to internal rules (e.g., founding partner 40% = ₹92Cr).
Frequently Asked Questions
Related Terms
Apply what you've learned
See this term at work on real Indian companies.
AletheiaAI checks market narratives against the filings behind them — screener, company disclosures, and sector reports across India’s listed companies, free.