‘Carry’ is normally the difference between the cost of money and the yield on investment made; ‘long carry’ refers to borrowing cheaply to invest in higher yielding assets. A very common strategy in foreign exchange markets, exploiting the difference in interest rates of two currencies, but highly risky if potentially adverse moves in underlying capital values are ignored. In private equity, ‘carried interest’ refers to the managers’ (normally) 20% share of capital gains. See foreign exchange, private equity.