Should I push for carry participation if I don't intend on staying at the GP forever?
GP is a mid-tier name. Hoping to stay for 2-4 years before moving to a better brand. Worth pushing for carry in interviews or leave it?
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Yes, preserves options in case you stay or want to change to a different GP role.
I wouldn’t die on the hill because it sounds like the chances it’s worth any real dollars to you are zero, but it’s always better to have than have not, and you might be able to use it for negotiating leverage at the new firm for a signing bonus or greater allocation - and all the better if you end up staying
Always ask for it if it makes sense. Perhaps your life circumstance changes and you love or need the job: you gain nothing from preserving options. You should go into it as if you are planning to stay there for the next decade.
Do you mind sharing some light on your plans to already move to a better shop instead of recruiting for a better shop now?
To be candid - I am applying from a PE FoF position now, so I think it will be easier to get my foot in the door by doing a stint as an assoc at a LMM shop now, then applying to the brand names in a couple years time with more direct experience under my belt
Yeah until you do 1.5 years at the LMM and get told there's no room for you to move up so you desperately apply to UMM firms who tell you they wont hire you because they rarely promote their own Associates up to Senior Associate / VP, let alone some boner who already got pushed out of the LMM firm.
In three years time you'll be back to sell-side Associate I at Brown Gibbons Lang, selling $40M cement manufacturing companies to XYZ Capital Group of Dayton, Ohio for a total year-end bonus of 20% of salary.
You know what FoF really stands for? Future of Failure. BOOM! MAN DOWN SOMEONE RING THE ALARM HE GOTTA GET A WHOLE NEW LIFE NOW!
Yes, definitely fight for some carry if you think you can reasonably get it. Even if you leave in a few years you’ll likely get partial vesting which can be valuable. Furthermore, life circumstances change. Maybe you get married and start having kids. Suddenly you cannot change geographies and the stability / reasonable WLB of your current firm starts to feel more comfortable.
I wouldn’t give up substantial base/bonus for it if you don’t plan on staying, but as incremental compensation? Of course.
100%. If you leave, and assuming your carry is not forfeited, the GP can buy back your carry at FMV, which is usually the internal quarterly valuations. It may not be what you think it's truly worth, but hopefully its >$0.
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