Curious if the community has any ideas or data points to help benchmark carry in PE at the senior associate/VP level. My firm has always given senior associates carry, and latest fund size is $5-6bn, and the firm's founder still heads up the firm. What are somepossible ranges for senior associates? And how would that stack up at shops of other sizes?
Trending Content - Private Equity Forum
Career Resources
Interested as well!
May data point for a European LMM Shop: 1.5% for Senior Associate
These threads come up from time to time and the answer is that there is no standard, especially at the senior associate level. From my own experience, some shops will give negligible or no carry but pay a high cash comp (ie. continue on the associate model) knowing most senior associates won't last more than a handful a years before being pushed out because there's not seat for them anymore. On the other hand, some shops might be more generous (seen anywhere from $10mm - 40mm carry $ at play, although the top of the range is more for VPs and with long vesting), but at the cost of a lower cash comp. There quite a few HH that do comp survey and they are not hard to get access to and I think those will give you a pretty good idea of the range of comps.
Are there firms with $40mm of carry for a VP? Assuming a 5 year fund cycle that is ~$9mm of annualized comp - that seems very high even for a principal/MD, much less a VP?
I don't understand your math?? Assuming 20% carry, 2x return and a 5 year vesting, it works out to $8mm of carry allocated over 5 years = $1.6mm / year. I know 2 people who got similar carry allocation and it was both a case of 1) newly raised fund 2) 7 year vesting 3) mid-level VP expected to stay on (ie. this allocation would cover the next 4-7 years until a new fund is raised and during which people will be promoted).
Quos odit ut praesentium in soluta. Voluptatibus rerum qui sit omnis ut exercitationem. Pariatur cum atque aut sit dicta quasi vitae tempore.
Culpa iste quia et ut. Assumenda et fuga voluptas voluptatem recusandae facilis harum. Consequuntur officiis eveniet officiis aliquam vitae aut.
Exercitationem ipsum ullam dolores cumque corporis neque at. Occaecati enim tenetur harum alias minima deleniti.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...