What is "market" for carry in a first time fund?
Title is self explanatory! What should the split look like of the total carry pool?
Trending Content - Private Equity Forum
Career Resources
WSO Free Modeling Series - Now Open Through
October 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Really depends if you took any material risks/supported the founders in raising the fund/joined prior to first close or came in after the manager has been de-risked. If the latter, probably just a slight premium to any other established fund? If you take on fundraising risk, then it's fair to expect more... whether that's 50%, 100%, 200% more is probably very much dependent on how valuable you are to the founders and how well you negotiate for yourself.
Friend joined a well new fund with ~$500m first close and joining as a senior associate (with VP promote in a year) and got 200bps so take that for what its worth
Founders had MF/UMM backgrounds
Solid carry economics for a Senior Associate. Any idea on the cash piece?
200bps is a little higher, but for a first time fund and perhaps a key Senior Associate/VP hire, that isn't crazy out of market. In general Analysts will get nothing, Associates will likely get nothing as well, if they do, 25 - 100bps would be the range I'd anticipate. Senior Associate/VP, I'd think 100 - 300bps, depending on fund size, experience of the candidate etc. Above that, it's probably pretty bespoke for a principal/partner. If you were joining a new fund as a principal/partner, you're basically a founding member, so I'd imagine you're getting a pretty big chunk of the carry.
Joining as a SA/VP, the real thing you should be thinking about is, how you can do well for a couple of years and then be a principal for the next fund.
One of my friends joined a ~$400 MM first fund as a senior associate and received 250bps (possible VP promote in 6 months). Friend was a senior associate at a MF prior to joining and the founder also had a MF background.
What is the market rate for comp at a fund of that size for analyst/associate?
Zero to 1%
https://www.heidrick.com/en/insights/private-equity/2021-north-american…
Sorry was talking about cash comp
Cumque deserunt sunt quod architecto rerum. Et provident nemo fugiat nam facilis quasi. Quod quasi facere quas suscipit in. Quibusdam at cupiditate velit.
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...