This might be a dumb question, but having a hard time finding good info on it. Do current employees get additional carry grants as new funds are raised? If so, is it typical to receive the same grant as a new hire would get?
Let's say you're a 3rd-year VP at a PE firm. Let's say you were granted $1.5M carry in Fund X when you joined the firm. That fund has now been deployed and the firm raises Fund XI.
Should the 3rd-year VP expect another carry grant? And if so, what size is typical? Would you expect to receive more than the $1.5M to account tenure? Or is it more like - you already got yours, the next grant will come when you get promoted.
If you’re investing the fund you get carry. Not sure re intra role seniority but should be a bit higher for sure (as a % and $ if fund size grew)
Carry grants are specific to any given fund. So if you are granted 50bps in one fund and your firm raises a new fund, assuming you haven't been promoted, baseline expectation would probably be that same 50bps in the new fund as well. Even with the same 50bps, if the new fund is larger than the old fund, it will represent more carry dollars at work. If you are promoted between launch of funds, I would expect a larger carry grant in the new fund consistent with others at that more senior level.
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