carry interest

USAGE SUMMARY

The phrase "carry interest" is not correct in English; the correct term is "carried interest." You can use "carried interest" in financial contexts, particularly when discussing the share of profits that fund managers receive as compensation.
Example: "The fund manager will receive a carried interest of 20% on the profits generated by the investment."

⚠ May contain grammatical issues

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

53 human-written examples

You can have a credit card and not carry interest.

The Guardian - Money

Its loans all carry interest rates below 4percentt.

The New York Times

They carry interest rates that are often many times higher than those on credit cards.

The New York Times

Such loans carry interest rates of up to 24% a month, according to several villagers.

The Guardian

Jumbo loans typically carry interest rates about one percentage point higher than conventional loans.

The New York Times

What's more, the two main classes of debt carry interest rates of 8.75% and 12.25%.

The Guardian - Business

Human-verified similar examples from authoritative sources

Similar Expressions

7 human-written examples

But the score is geared toward creditors, not landlords — and creditors, unlike landlords, seek customers who carry interest-accruing balances on their loans and credit cards.

The New York Times

Traditionally, American Express has been used by people who spend lots of money (generating fees from merchants) but do not carry interest-charging balances, the primary source of bank profits from Visa and Mastercard.

The Economist

"But they really want the carried interest provision, which I believe Hillary Clinton is leaving and it's very interesting why she is leaving carried interest".

Huffington Post

Yet carried interest endures.

The New Yorker

I won't touch carried interest.

The New York Times

Expert writing Tips

Best practice

While "carry interest" is commonly used, especially in finance, it's grammatically incorrect. Use "carried interest" instead, particularly when referring to profit share for fund managers. For general writing, consider alternatives like "accrue interest" or "bear interest" for clarity and correctness.

Common error

Avoid using "carry interest" when referring to a share of profits from an investment fund. The correct term is "carried interest". "Carry interest" can be misinterpreted or sound unprofessional in formal writing.

Linguistic Context

The phrase "carry interest" is typically used as a verb phrase followed by a noun, functioning to describe something that generates or bears interest. As Ludwig AI explains, the phrase is grammatically incorrect, with "carried interest" being the correct term in financial contexts.

Expression frequency: Very common

Frequent in

News & Media

75%

Formal & Business

15%

Wiki

5%

Less common in

Science

3%

Encyclopedias

1%

Reference

1%

Ludwig's WRAP-UP

The phrase "carry interest" is frequently used to describe financial instruments that generate interest or bear interest rates. However, it is grammatically incorrect. When referring to the share of profits earned by investment managers, the correct term is "carried interest". Ludwig AI points out the grammatical error while providing numerous examples of its usage in diverse contexts. Although prevalent in sources like The New York Times and The Guardian, it's crucial to note the grammatical inaccuracy and consider the more precise alternatives such as "accrue interest" or "bear interest" to maintain accuracy in writing. Therefore, use "carried interest" when referring to fund manager profits and carefully consider the context to choose the most appropriate phrase.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

accrue interest

Focuses on the gradual accumulation of interest over time.

accumulate interest

Focuses on the increasing amount of interest over time.

bear interest

Emphasizes the obligation or responsibility to pay interest.

attract interest

Highlights the appealing nature of an investment or financial product that generates interest.

gain interest

Emphasizes the act of receiving or earning interest.

generate interest

Focuses on the creation or production of interest.

yield interest

Emphasizes the return or profit produced by an investment.

draw interest

Highlights the act of receiving interest payments.

charge interest

Highlights the act of imposing interest on a loan or debt.

possess interest

Indicates that a financial instrument or account has an interest rate.

FAQs

What does "carry interest" mean in finance?

In finance, the phrase "carry interest" is often intended to mean "carried interest", referring to the share of profits that investment managers receive. However, "carried interest" is the grammatically correct term.

How to properly use the term "carried interest" in a sentence?

A correct example would be: "The fund manager's compensation includes a "carried interest" of 20% of the fund's profits."

Is "carry interest" grammatically correct?

No, "carry interest" is not grammatically correct in financial contexts. The correct term is "carried interest", referring to a specific type of compensation.

What's the difference between "carry interest" and "accrue interest"?

"Carry interest" is often misused for "carried interest", a share of profits. "Accrue interest", on the other hand, refers to the gradual accumulation of interest on a principal amount.