Trending Content - Private Equity Forum
Career Resources
WSO Free Modeling Series - Now Open Through
November 30, 2026
9 Free Financial Modeling Lessons
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.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Yes, the PE manager raises multiple funds. The PE managers staff are allocated carry in each fund. Over a 10 year period, senior staff at the PE manager would have carry across 3-5 funds depending on how fast they raise and invest each fund.
Completely agree with Franco, this is the core of how private equity functions. It also means that a firm which is deploying capital faster will be in a position to raise their next fund sooner … so deployment velocity becomes a key factor in compensation as well as carry allocation for any given fund.
Must be nice to have carry allocation across multiple funds.... Do most PE firms in North America utilize the American waterfall? Are there any firms or funds that use an European waterfall?
A lot of NA PE funds use the American waterfall...hence the term 'American' waterfall
Inspiring
I found the European waterfall to be incredibly common in North America. As a result, I’ve always wondered why they called it that.
And yes, carry across multiple funds is absolutely fantastic.
The term European and American waterfall are less useful now. It is more useful to use ‘Whole of Fund’ or ‘deal by deal’ waterfall. Most European and American PE funds now use Whole of Fund waterfall.
Necessitatibus cupiditate repellendus eos quos sunt ea. Repudiandae voluptatem tempore enim quia provident autem voluptatem. Consectetur molestias est dolores eum non id distinctio. Est molestias odit veniam facilis odio nihil. Sed sunt accusamus eaque ea.
Sunt neque in ullam quo. Nemo sapiente pariatur in velit qui.
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...