Comp Breakdown for MF PE Partner?
Assume partner at publicly traded MF PE shop (, APO, , OAK). Also assume been at same shop since associate level.
Cash comp: $1-2m?
Board Seats: maybe 4-5 seats, $50k each?
Carry: carry in a bunch of funds I'm sure. Let's say 2 $15bn funds, 75 bps each (maybe 50bps in one and 100bps in another) so basically call it 75bps across $30bn. 1.5-2x return is $10-20m per fund so $20-40m for both, so call it $2.75-6m a year for 7 years. That figure is annualized and obviously won't be paid out like this; carry will be paid out towards end of fund. I'm also confused by this because $20-40m in carry seems a bit low for a partner at a big fund, considering how the giant PE comp report says partners have $50-60m in carry dollars at work.
Co-Invest: if this partner had $10-15m in carry from their principal days, and it actually paid out, and they put all of this towards co-invest + lever up (do big MFs allow leverage? If they do, maybe you lever up 2-3x?), assuming 1.5-2x return that's ~ $2-6m a year for 7 years. Again, this is an annualized figure so same thing for carry also applies here
RSUs: I have no idea. Since these shops are publicly traded, half the carry walks out the door, so I would assume a lot of that or a good amount is made back from RSUs.
Total: $5m on the low end ($1.75m of which is straight cash, the rest is illiquid), and $14m on the high end ($2.5m of which is liquid, rest is illiquid until funds pays out obviously). But this is kind of a dumb and irrelevant number because carry/co-invest, the bulk of the comp, isn't paid out every year. For example, if this is during like a fund's second year, obviously there won't be any carry/co-invest checks, so the partner will take home cash comp/board seat comp, unless there's overlapping from older funds. This kind of makes sense I guess because I've heard some partners at APO are pulling down $20m (that Athene got fired I think), and $5m seems in-line with MDs at BBs. Thoughts?