KKR compensation rejig. Thoughts?
Looks like a pivot towards more carry vs cash comp. Do you expect other funds to follow? What does this mean in terms of bonuses?
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worked at KKR form 2018-2022, as you progressed by level your bonus always shifted from a higher % cash to more vesting KKR stock and carry, I don't know how much more this is going to go?
Is carry allocated on a general seniority basis or based on the funds you are directly investing out of? I have heard through the grapevine that there is a general carry pool and there were some senior heads in operations that were also earning carry. I could easily be misinformed, so any color would be much appreciated!
before KKR became publicly traded, everyone had carry from IPs to EAs. and they had non dilutive amounts, people that are still there to this day if you are in ops or finance or tech you still have SOME of that. When KKR went public they took a portion of that amount and what they believed the carry to be worth and granted those people common shares.
now, carry is a general pool, if you are legacy you still receive your non dilutive amount, if you are there like i was from 18-22, you are given a bps of the GP that vests over 4 years. when i left the GP bought me out of my un-vested amount
I see, thank you so much this is very very insightful! Post going-public, at what level did carry allocation begin (assuming VP+), and how did the bps you earn from the GP differ across the groups like CR, PE, RE, CM etc.? Was it all relatively uniform at the senior level?
i don't know the variation amongst groups and was too much of a puss to ask peers, i was just pumped to get an offer and survive, i was mid bucket AT BEST. I would assume in order of highest to lowest, NA PE, Asia/EU PE, Infra, Cred, RE, Tech/HC Growth, all other weird strategies they launched since i left, core etc.
From what I know about my network at the more senior level, carry from the GP is actually pretty evenly distributed across groups at KKR. It's more a case-by-case and a mechanism to retain head talent, not necessarily only a function of where you specialize within the firm, this might be different at other megafunds.
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