PERE: What's your carry?
Would be interested to hear any disclosed figures + outline of AUM of your fund. Also after which year it is attainable. Thx
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I have 10% on the carry at a boutique RE fund based in the US and funding/building in Europe, only. Only that high due to being a partner.
Curious, what were your qualifications, or how much experience did you have to come in as or get made partner? Dont want to sound like a dick, generally curious.
If you're speaking to me, that's not being a dick. I own a CRE Mortgage Brokerage, lone wolf. I merged my firm into my client's (now Partner) development firm and wrote the plans/found the seed capital for the fund. My job is to raise capital and manage our LP's. I'm nothing special, no college or MBA, just lots of failures in companies I tried to start and people seem to like how I look them dead in the eye while asking questions to make them feel vulnerable...
Typically carry is calculated at the Fund level. There are very few managers who are able to sneak in carry at the deal-level. (The ones who do it at the deal-level tend to throw in some pretty clever language).
Typical promote structure will have a preferred return followed by either one hurdle or multiple hurdles. I've typically seen the Firm/Partners receive 60-80% of carry with the remaining 20-40% reserved for team members.
Multifamily development total cost: $50MM Assumes 55% LTC, 25% IRR, 3 year hold Carry % is a % of the $6.2MM LP contribute 95% equity, the waterfall IRR increasingly shifts returns to the promote.