How much carry should I look for?
Background: AN 1 in a coverage group at a MM and received a preliminary offer from a fast-growing UMM / MF group that has roughly doubled (based on my estimates) its committed capital over the past 3 years and doesn't push people out after 2 years. Hasn't lost money on its investments and overall a really sharp group of guys.
The offer I received verbally was 160 / 160 (base + bonus) for Associate 1 with a 60k signing bonus and some "carry". I don't really understand how the carry math exactly works at my level or what the usual amount is for firms that do grant carry at the associate level (i know it is not that common for UMM / MF funds). For the purposes of this discussion, we can assume that the group I interviewed has around $7 billion of capital.
How much carry should I be looking for or is considered "street"?
Bump
No carry at associate level for most
I know it’s not typical but I will get some carry (that’s what they have communicated to me). I want to benchmark to see how much is “street”.
The answer is in his response, street is 0.
What is reasonable, then?
0 is reasonable, so anything above that is just a cherry on top.
Lol, I think he’s going to keep asking you what is street until you give him a concrete number.
What is the average cherry on top, then?
/s
Lol guy can't read and landed a PE offer
The fact that they’re willing to go through the brain damage of giving you any carry you should be happy.
“I’ll take zero carry for 100% of fees.”
..
This is a filthy good offer, just take it
how did you find this fund? was it off cycle and doing your diligence or on cycle?
Don’t know if it is considered on-cycle or off-cycle but the PE group ran a pretty targeted process. I didn’t network.
yeah dude, zero is market. congrats
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