I am a senior employee at a VC firm, but not a GP, and I am being asked to contribute to the GP commitment into the new fund. I get ~2% of the carry in the new fund, and I am asked to contribute ~1% of the GP commitment "to create alignment". I believe in the firm, but I’d rather not have my resources be so concentrated.
Is this common? I wasn't asked for previous funds but I was more junior then. Would you push back?
Yes its common. At my fund the GP commitment and carry % are one and the same.
The idea is that you can pay for the GP commitment with some of the previous fund's carry. The fact that you got let in the carry with no commitment earlier should help.
I am not getting any dollars yet from previous funds' carry, Fund I has not generated any yet, do you think I should still agree to contribute?
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