MF PE Carry Levels @ Varying Seniority Levels?
Does anyone have a sense for carry levels @ varying seniority levels for MFs? Is ~35-75bps for a principal, 100-150bps for a partner realistic? Assuming the firm is just associate --> prin ---> partner. Just trying to get a sense for #s, thx. Would appreciate any data pts
Bump
Bump
Yes it is.
“Senior” partners going up to ~3%, big dogs (eg exec committee, CIO) ~7-10% tops.
That’s for a private MF with limited headcount, not a publicly listed one
Curious how do the numbers change for a public mf? Is the carry that’s lost to shareholders made up for with rsu’s? If not, seems like always wiser to pick private mf over public, no? But then again, APO is supposedly highest paying and they’re public
Marc Rowan said how he will be increasing comp and will be giving ppl more carry. This was recent too, maybe 2-3 months ago or so. If they were already the highest paying MF, I can only imagine their carry levels are higher than private mf's, right?
I can't comment much on public MFs as I don't work at one, but indeed its lower carry pool but stock options on top.
In terms of Apollo vs. other public MFs, two factors to keep in mind:
i) Carry % of founders / executive team has material impact on "residual" pool available to normal investment professionals. Given that most / all public MFs already went through 1-2 leadership transitions, and their founders' wealth comes from the GP stake (ie public equity stake, dividends etc), this increases the total residual pot quite meaningfully vs. some private funds where the top 3-5 guys hold 30-50% of the carry pool.
ii) Apollo has an overall much leaner setup than eg Bx, KKR, Carlyle, ie fewer offices, less employees, higher AuM / capita. Moves the needle.
What kind of fund size do these bps refer to? Or how do you think about those in $$$ terms?
Prob $20bn+
My numbers refer to a $15-20bn fund - current generation (2019-H1'21 vintage), not upcoming one (H2'21-'22).
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