Hi Guys,
Simple question and apologies if it is obvious. Do the majority of PE firms offer carry, or do some simply give a good salary + large bonus but no carry.
If they do offer carry, how many years experience does one need before they benefit from it?
Would be interested to hear how and if this varies largely from firm to firm.
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Just about every PE firm has carry… that’s why we’re here. Most start at the VP level, with others a little earlier at Senior Associate or a little later at Principal. A select few give it all the way down to first years (very rare) while others wait until Partner / MD level (also pretty rare).
There are certain evergreen (ie permanent capital) funds that don’t do traditional carry, but there’s still incentive equity, usually an annual profit split based on IRR (closer to a hedge fund model) with additional distributions if / when they do exit
Noted, thanks for the reply!
Reason I asked is because I was recently offered a position with a REPE firm that paid a ‘spot bonus’ whereby everyone realised from the profits of an investment, normally each year. However, they didn’t mention anything about carry. Could be the same thing and I’m just being a bit stupid!
The spot bonus is low though (they said about 0.25% of salary, though they do pay a bonus of 100%).
It sounds like you are super junior. Typically they don't get carry.
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