Carried Interest as an Analyst / Associate
Hi All - I’ve been networking for some REPE roles and found a firm that offers carried interest starting as an Analyst (in addition to above market base + bonus). Is this unheard of at the junior level / how do the mechanics typically work? Much appreciated in advance
You found somewhere that pays $250k for first year associates and gives them carry? Yeah this is not the norm - I would be interested in what place that is.
You found somewhere that pays $150k for an associate and offers carry? That’s not unusual. More entrepreneurial shops can’t afford to pay all cash to their associates. So they offer lower cash comp and give carry to make their offer competitive with the big name firms that can pay $200-$250k all cash
Is this a new firm that’s trying to build out a team? Carry for analysts is definitely not market.
For some additional context, it’s for one of the SWF’s, so not necessarily a new shop. I’m not entirely sure of Associate pay, but Analyst pay is roughly $100k + 70-100% bonus + carry. Seems pretty unusual to me, but maybe others can opine
This is very good pay for an analyst. But I guess it depends on what other commenters asked: If carry amounts to $100k over 5 years, that’s not material. It’s $20k per year that’s deferred for 5 years...
If it’s $500k over 5 years, you’re getting paid nearly $270k as an analyst. I’m guessing this is one of those SWF in Dubai? Comp has to be high to lure people to the other side of the world
That’s a good point, and to be fair I don’t have the best visibility into just how material it is.
To your second item, it’s one of the middle eastern SWFs but the position in a tier-1 US city
is the carry material, or is it incredibly small, so they can just say "we offer carry."
Not uncommon for associates at smaller firms, especially when the cash comp is below market. Its theoretical money, which you may or may not vest in, which may or may not become real depending on firm performance, and which they don't have to pay you until 5 years down the line.
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