Caret in argument list c++

So I found this in the MSDN libs:

void Form1_KeyPress(Object^ sender, KeyPressEventArgs^ e)

what do the carets mean in an argument list? Is it some sort of explicit pass-by-value? I've never seen it before.

The problem is making a Windows program. The windows API is painfully unwieldy and I need an easier interface to it. I'm open to suggestions if there's an easier way.