European Waterfall Compensation Expectations

Does anyone here work at a PE firm that has a European Waterfall distribution structure? AKA carry isn’t realized for the GP until the entire fund reaches carry, rather than individual exits.

I’m wondering how compensation/bonuses are for a fund with a European Waterfall, considering the fund would likely not be receiving any carry for ~5+ years. How would the fund be able to pay a competitive base/bonus with only management fees?

For the purpose of my question, imagine a $500mmPE firm with a European Waterfall structure that has not reached realized carry with ~15 employees. How is there enough to go around on only management fees?

 

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