Percentage of firms that pay out carry?
Does anyone sit with a study or Lp dataset or similar that show the share of PE firms that end up paying carry? Ideally with cut off at 2000 or something.
Trending Content - Private Equity Forum
Career Resources
Based on the most helpful WSO content, here are the percentages of firms that pay out carry:
These percentages reflect the share of PE firms that end up paying carry, as detailed in the WSO dataset.
Sources: Actually Realizing Carry, Confused about carry at PE Fund, Data: Average Private Equity Compensation and Carry from Associate to Managing Partner, Data: Average Private Equity Compensation and Carry from Associate to Managing Partner, Top Growth firms comp out of undergrad
Bump
It depends on vintage, say for 2005/2006 funds I wouldn't be surprised if about half of all funds raised in those years didn't pay carry. A good gauge is the number of funds per vintage that did not hit the 8% hurdle that's standard. For other more "normal" years I would say bottom quartile funds don't hit hurdle, or about 25% of funds raised per year.
It is very rare that large PE firms don't end up hitting hurdle. Fund returns are more likely to be mid to low teens net IRR yes but very unlikely to be below 8% unless the fund was raised right before a major financial crisis or something
Deserunt temporibus mollitia et ab ipsam non dolorem. Laboriosam voluptatem accusantium molestiae quibusdam molestiae et nulla. Veniam suscipit et neque. Non quas aut ut est. Sit odio ut non. Aspernatur fuga quasi enim odit maiores tempore eum cum.
Minus magni dolorum blanditiis et facilis. Voluptatum autem tenetur aliquid aperiam ut ut. Cum dolores et nisi commodi minus.
Et facere rem autem nemo. Sed consequatur ut reiciendis enim et et sit. Veniam vero rem porro ratione earum quae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...