I understant the concept of carried interest on a basic level, but can someon expound upon the concept?
specifically, if the usual 2/20 exists, what amount of the 20 do associate/vp/md's who have carried interest take? obviously it differs across the board, but is it broken on a fund by fund basis or the shops total carried interest for the year?
thanks all.
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the way it works from my understanding is the fund sponsor will get the 20% carry in the LP. The partners etc of the sponsor have a stake in the LLC (usually) that is the GP in the fund along with outside investors (the LPs). the 2% is usually paid out to cover current expenses
http://www.wsgr.com/PDFSearch/1352819.pdf
read through that
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