HIG Carry
Does anyone have an updated perspective on HIG's carry allocations at the mid levels (VP / Principal)? Any sense of DAW would be helpful. I saw a thread that stated that associate cash comp had been bumped recently but I'm curious if they still have a rep for underpaying after the associate stint.
How much is associate comp?
Significantly under market. Heard $1mm daw for VP1
Thanks for the insight.
What do other firms typically give for vp DAW?
~$2-4MM is market in my experience
wrong
What’s the right number?
Pretty dog shit from what I understand, at least on the credit side. No vesting schedule until you hit MD, so it's purely funny money.
Co invest worth it though and make up for the lower carry? They have some crazy exits / IRRs
It helps, but don't forget co-invest is putting up your own at-risk equity dollars in a levered, illiquid investment that is subject to a multi-year vesting period as well (i.e. if you leave, HIG has option to buy back un-vested co-invest at cost and can adverse select you on a deal-by-deal basis in theory). Just not the same thing as carry.
That's off market our co invest is bulletproof you are an LP with no change in terms etc and no option to buy out. Our carry on the other hand has tons of holes. Options to buy if you go to a competitor, various clawbacks etc.
Agree that it's off-market, but that's HIG for you. Also based on close experience... they're not afraid to utilize that buy-back right! Based on my experience, you have to treat all of the co-invest / carry at HIG as funny money until it turns into cash in your bank account.
Yeah, though I’m not aware of large funds not being funny with carry. Agree you should expect to only realize the napkin math if you stay. If you don’t stay, treatment usually comes down to what your fund/group head will do for you.
Yeah but screwing people on the co invest is a whole new level
Coinvest is airtight, that’s fake news
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