Carry
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In elementary arithmetic a carry is a digit that is transferred from one column of digits to another column of more significant digits during a calculation algorithm. For example, in the following pencil-and-paper addition
¹ 27 + 59 ---- 86
the digit 1 is the carry.
When speaking of a digital circuit like an adder, the word carry is used in a similar sense. In most computers, the carry from the most significant bit of an arithmetic operation (or bit shifted out from a shift operation) is placed in a special carry bit which can be used as a carry-in for multiple precision arithmetic or tested and used to control execution of a computer program.
In venture capital, carry, or "the carry", is the percentage charged as an incentive fee on profits, or "incentive allocation". It is the percentage of the profit that goes to the fund managers. The carry incentivizes the general partners in a venture or buyout to go for big wins. Typically, the carry varies appropriately to the quality of the fund.
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