re_invest2956

I used to work for a real estate fund that charged a 30% carry over a 10 with a 100% catch-up. It's a LMM fund but it has one of the best track records in the REPE business. 

I’ve regularly charged 30 over 8, 65 over 12 with a large family office. If you have a strong track record and bring good deals you’d be really surprised what capital partners with a flexible mandate will accept.

 

re_invest2956

I used to work for a real estate fund that charged a 30% carry over a 10 with a 100% catch-up. It's a LMM fund but it has one of the best track records in the REPE business. 

I've regularly charged 30 over 8, 65 over 12 with a large family office. If you have a strong track record and bring good deals you'd be really surprised what capital partners with a flexible mandate will accept.

That's your promote structure on a fully discretionary fund designed to invest as an LP or co-GP at the deal level? If so, that's amazing.

Those numbers seem more like a JV-/deal-level waterfall, not fund level. 

 

Vista is 1/30 over 10 and 1.5/20 over 8, with a GP commit of 10% which is pretty big (looks like Bain after their 2008 vintage which makes sense since this is their "comeback fund" after lackluster returns and low DPI in their recent funds v thoma)    

 

There are a ton of funds that are various times have had higher than 2/20.  Bain did at one point.  HIG.  A number of the VC funds.  Usually hard to keep those fees and as you get bigger fees go down below even the 2/20.

 

VC funds typically do not have a preferred return - the "hurdle" is simply return of capital. Most buyout funds are 8% and frankly even that is pathetically low given that they all claim to target 20%. Bain has been 6% for ages, which is also insane, but they can get away with it.

 

…? Hurdle ESPECIALLY matters for low performance funds, it’s the whole point of them 

 

There are a small number of lower middle market growth equity firms that charge 2.5% and 20%. The 2.5% was when the firms were smaller and some have been able to maintain north of 1bn fund size.

As one poster mentioned, almost all high quality vcs charge 2.5% and premium carry. Either a step up to 25-30% or in the case of true tier 1 vcs, 25-30% off the bat.

 
RedWhiteAndBlue

There are a small number of lower middle market growth equity firms that charge 2.5% and 20%. The 2.5% was when the firms were smaller and some have been able to maintain north of 1bn fund size.

As one poster mentioned, almost all high quality vcs charge 2.5% and premium carry. Either a step up to 25-30% or in the case of true tier 1 vcs, 25-30% off the bat.

Adding to this...VC has the stickiest returns which means paying top performers is more accretive to returns than say vanilla LBO PE.

 

I believe Gauge Capital charges premium carry, but recent funds have been absolutely knocking Ut out of the park so net returns for LPs are still extremely attractive

 

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