Negotiating Equity in Recent Launch
Hi all. Joined a newly launched tech fund a year ago with assets <$500M. Performance to date has been okay but given the recent drawdown I'm not expecting a bonus this year. Overall I believe in the strategy and think over the long term the fund will be successful so I've been thinking of asking for equity in the fund. Frankly I would prefer this over a cash bonus (I'm very bullish on the strategy). I'm wondering - is it unprecedented to ask for equity in the fund in lieu of a bonus ever? And at what level of seniority is this okay? What percent of the carry pool would be an acceptable ask? Keep in mind the investment team is just the founder and myself. Thanks in advance for any thoughts.