Curious if anyone has any insight about how the size of a fund translates to the investment team's take-home pay? What % of a management fee goes to expenses vs. salary? I'm more interested in Growth Equity and VC, so smaller AUM than a megafund.
Let's say 2 partners, 1 Principal, 1 Associate.
$50m $100m $200m $300m $500m $500m+
it’s going to be really funky because of carry and how it vests. as a general rule the partners get whatever is left over. for associates the range would be like 200k - 250k for growth equity and up to 300k for the top growth equity and VC places. maybe you get closer to 400k when you’re senior. principal probably gets some bps in the fund. not sure how much but can’t be more than 1-2% really. so you’ve got cash comp of maybe $400-$500k and then carry. the partners split whatever is left. 98% of the carry and whatever management fees are after the associate and principal comp + back office expenses and whatnot, which obviously don’t scale linearly, but that gives you a quick sense
Thanks! This would obv vary with different org structures and fund sizes, right? There's no hard and fast rule that dictates a % or anything?
yes no hard and fast rule but based on several variables as people have said below. AUM/ head is something I always look out for
Things are going to be a bit all over the place because of different strategy and operating models. For example, a $500mm Growth Equity fund is going to be staffed very differently than a $500mm early stage VC and that's going to be reflected in comp. I think the right way to look at this is from a AUM / head or AUM / partner.
100%.
Can you go deeper here?
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