I've been told that it's typically uncommon for people at big shops to get carry in deals / funds. Even for VPs / MDs, compensation is usually in the form of base plus bonus.
Is this true? I'm talking big shops like Blackwood, Starwoods, MetLife, PGIM, etc.
Heading into year end reviews between the associate / VP level and was wondering what is an achievable ask.
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Pls fix
Not a hard and fast rule, but generally speaking it’s true until you’ve reached Partner/MD or equivalent, and even then not guaranteed. At least to my knowledge.
I'd believe that for MetLife and PGIM, but not for Blackstone or Starwood... at those shops VP and above are definitely getting points of carry awarded and are probably getting the opportunity to coinvest, with leverage, in various vehicles across the platform. I think carry is dejure at that level at most large institutional asset managers (think what folks would call mega-funds).
Where it is more grey is at the smaller investment managers with only one fund series and the fund sizes are under $1B, there a founder or founding team is likely still in control and is probably a little more stingy with the carry. I.e. Greystar has typically not given carry below the MD level (FWIW, I'm hearing that is changing), but I know of some smaller funds that are more liberal with giving carry out to junior folks. At this level, it is more case by case I'd say.
At a LifeCo, you are probably not getting equity upside until you are very senior. I've seen lots of people bail out of the Prudential and MetLife's of the world around VP to go get a shot at having a huge year. I've heard that even really senior people at places like Invesco and Barings aren't getting much equity upside. They're trading stability for less upside, which is a great path to an upper-middle to upper-class lifestyle.
*investments
At PGIM you get carried interest/deferred comp based on an internal index the firm sets. This is only on the equity side. The debt side gets deferred comp in the form of pru stock.
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