New Hire: Carried Interest economics for a new fund?
Hi all, I am currently in discussions to join a new private equity fund. They are currently investing out of a small Fund 1 and will begin raising a larger fund 2 in a couple of quarters. Cash compensation is below market for the role and they've asked me to come up with a number on how much carried interest I should receive
For reference, I am joining as an experienced Associate. The team is small and I would get to help scale the platform. I like the people and believe in the strategy
I calculated the total carry pool to be worth in the range of $50-70mm but given that the firm is owned by a different investment firm, Im assuming a bulk of the carry will go to them
I am wondering what a realistic % of carry pool would be appropriate to ask for as the first junior hire at the firm?
50-100 BPS
Doesnt 350-700k seem a bit low? My original thought was 150-250bps would be more appropriate but curious how you came to that conclusion?
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