Megafund Carry at VP level
I know that carry at megafunds is virtually unheard of at the associate / pre-MBA level, but what is typical for carry for VPs? Obviously with bigger funds and more mouths to feed, individual carry % must be pretty low.
Example: $8B fund with 2.0x ROIC = $8B in profits and $1.6B in profits for the firm assuming 20% fee. Would 0.2% vested over ~7 years be market? That would equate to $3.2m. Just trying to back into average comp #s.
That’s in-line perhaps a bit low given the longish vest. Median vest is more ~5.
First depends if the MF is Private or Public. If public 50% of the carry goes to shareholders.
At the public megafunds, you’ll get less in carry but also get public stock comp so the all in comes out to about the same place at the vp level. Its really just at the more senior levels that the public shareholder “tax” becomes more of a drag.
What's a typical RSU grant for a VP at a public MF?
Is assuming cash is ~$500-600k, carry ~$200-250k amortised over 10 years and ~$250k in total stock vesting per year (assuming a moving ~3-4 tranche structure of vesting stock - i.e. $250k stock grants every year vesting over 3-4 years) a fair estimate? In other words ~$1M all-in?
In general they pay at the high end of “market” for vp level. Carry vs stock mix depends on firm. When you get to this level generalizations are hard as “top bucket” vs “bottom bucket” can literally be a 7 figure range.
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