I'm entering into carry negotiations. Thoughts from the community on where I should set my expectation/what I should push for? I'm a first year VP at a new $350m fund. There are 2 partners, 1 principal, 1 VP (me), and 2 associates.
Also, does $150/$150+ cash sound right? Gut says it is.
Thanks
how many others are in the team at each level?
good question. i updated the post.
good question. i updated the post.
$150/150 sounds about right for a $300mm fund...fyi, you can filter the company database by salary directly now here: http://www.wallstreetoasis.com/wso-company-database/salary
so you can filter by job title (Vice President) and industry (PE) and see what it spits out...under company search tab you can also filter by AUM and see if you can find a set of firms in your area...then you can look around LinkedIn and see if you're able to find anyone you're remotely connected to that may have a better idea on comp at these types of funds...
not sure on the carry...
I'm sure this is rather bold. But do you know if they would disclose a waterfall/equity cap table to see whose pie you will be eating from?
Haha - I don't think I'm comfortable going there, but I would assume that it will come equally from the partners' share.
I can't provide a great benchmark but I work on a $100m - $200m fund II and VP's get $145K base, range of bonuses and 0.5 of the 20 percents carry (aka 2.5% of the total carried interest). There are 6 partners here already.
I'm not 100% sure but I'd assume this is somewhat below market, probably because the top-heavy structure. Good luck.
What's your compensation if you don't mind me asking?
$150/$150 is actually pretty generous considering it is the first fund. Without investments from prior funds to draw fees from, the firms ability to pay out $300k to a VP is solid. If it were the second or third fund, I'd say it is potentially a little light.
On the carry perspective, I'm assuming that the firm is hiring multiple additional people. 2 Partners / 1 Principal / 1 VP is pretty slim for a $350mm fund. There is probably additional carry allocated for future hires. I'd say that market compensation would be 1-2%, but the incredibly small team creates more to go around. You may be able to negotiate up to 5%, which would be above market, but possibly attainable given the situation.
What would you expect an associate in this situation to make?
Devils Advocate -
I've shared this before and hope it is helpful for you: http://career.chicagobooth.edu/fulltime/docs/2012-2013_holt_thomson_reu…
Regarding my salary, my fund pays my crap. Hence why after 2 years I've found a new firm to join.
Thanks bro
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