How does carry get measured for seniors in PE? Let’s say someone gets 2% / 200 bps of carry.
This is 2% of what?
For example if we have a $1B fund that we turn into $2B, carry pool is $200m. Is the % as a percentage of that carry pool or something else?
What is standard % of carry for each level of partner track?
| +60 | Working on Juneteenth | 35 | 1d |
| +25 | Hardest time I have ever seen to be a GP | 3 | 2d |
| +20 | How to Get on Career Track / Stay Post ASO years | 6 | 22h |
| +19 | Weighing exit from LMM PC/PE | 4 | 22h |
| +15 | Healthcare PE | 6 | 2d |
| +14 | KKR comp for Principal | 15 | 11h |
| +12 | LMM groups within larger platforms? | 1 | 6d |
| +11 | Reality of the move from LMM to MM | 2 | 5d |
| +9 | LMM/MM PE London | 5 | 1d |
| +9 | MBA and Private Equity | 3 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Edited: thanks to response below.
200 bps of carry would usually be considered as a pool of 100% (generated by the usually 20% carry rate fund). In your example, 2x on a $1bn fund with a $200m carry would mean $4m to the individual.
Most funds would allocate the majority of the carry allocation to the partner and principal layers. As there are fewer individuals at those layers, the per person carry allocation is higher.
This article explains this in more detail: Private Equity Salary and Bonuses – From Analyst to Partner - Buyside Hustle
200bps of carry would mean $4m not $20m in your example above
Fuga sequi corporis nihil voluptatum iusto. Numquam vitae quo ipsa consequatur officia ea neque. Ipsa et facilis labore eum amet quae ut. Eligendi dignissimos repellendus quisquam maiores sed.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...