Question for veterans in the hf space. I am looking at a long short fund they mentioned providing a guaranteed comp package? My question is if the fund blows up where would I be in the liquidation cap structure?
| +26 | Fastes PM progression ever seen? | 30 | 3h | |
| +20 | Track Record Expectation For PM's | 29 | 1d | |
| +17 | How extroverted is the junior MMHF job? | 5 | 3d | |
| +16 | HF perspective on Google (Alphabet) | 5 | 3d | |
| +14 | Recommend Pass for MM HF Case Study | 4 | 4d | |
| +13 | Why don't MMs do any activism? | 10 | 1d | |
| +11 | Stephen Moyer- Distressed debt analysis | 5 | 2d | |
| +10 | Track record to start a small hedge fund? | 6 | 1d | |
| +10 | List of all long/short funds | 7 | 3d | |
| +10 | Biotech Silo? | 6 | 7h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Maybe others have more info, the only contracts I have seen related to guarantees have language around you being employed and fund being around. I’m guessing there are more details (have a lawyer review it) but I’ve never dug into it because if the fund blows up I have bigger problems. I also have seen some of the guarantees paid up front (a percentage) as signing bonus.
Hahahah where would I be in the liquidation cap structure. You think like someone in credit lmao
You are not a creditor to the fund. And for sure, not an equity owner of the fund. That's where you are in the liquidation cap structure.
The only guarantee comp at HFs is base + equity my guy
how old r u and how much money do u make
We'll have a good sample size to answer this question by YE22.
Have been fortunate not to have gone through a fund liquidation myself.
lmao - no it's not guaranteed. the only guarantee is money you've been given in the past.
Thanks bros - I will ask for the guaranteed comp upfront so it’s really guaranteed then with no clawbacks. Stipulation that I stay employed at fund.
Basically means your first year total comp is "X" no matter performance. Sometimes if you have a good track record and push back you will get 50% upfront in a signing bonus and the rest as total comp # after 1 year.
I doubt anyone would give it all up front, if your fear is the fund is gone after a year why you joining in the first place? Actually that is the question I usually ask. Prefer to give very generous on back end, but most funds limit signing bonus.
Dicta est nam dolorem quod velit aut error. Nesciunt quas ipsa eius quas culpa nostrum. Debitis minima aut libero.
Quam alias fuga est suscipit. Voluptas suscipit fugiat deserunt. Rerum porro non qui. Et laudantium vel vero aut voluptates. Ex deleniti recusandae facilis.
Quis assumenda repudiandae dolor iste eos illum. Voluptatem sint ea et. Aut autem est qui commodi et asperiores. Necessitatibus aut qui maiores qui voluptatem sit. Libero id omnis incidunt dolores. Nulla sit ab sit vitae aut laboriosam.
Aut et eos similique vel ad adipisci aliquid. Placeat culpa esse cum saepe provident tempora. Dolor mollitia dicta sed corporis eligendi unde. Sunt dicta dolorum quod.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...