Any insight into how firms that promote long / buy and hold investment timelines utilize carry for their investment teams?
I can understand why this investment strategy could be attractive to sellers, but it seems to be less attractive for fund employees and even management teams who may have to wait much longer than normal for carry checks.
Do family offices that promote “buy and hold” timelines still use traditional carry, or do they utilize distributions/dividends/etc. to help offset this?
Not specific to family offices but have seen long term hold funds use the concept of interim carry/partial carry that is paid out during holding period using independent valuations.
Thanks, that’s interesting. Wonder what happens if the valuation declines in later years? Any clawbacks?
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