How does MF Carry work?
At MM funds, carry is a stated/set amount. Billion dollar fund, economics are simple & are set in stone. But at publicly traded MFs, where they're doing $20bn+ funds, how does carry work? Do principals/partners get allocated a set % of the carry pool at the start of the fund, or is that not the case, meaning it's determined on a case by case basis as the fund exits portcos?
The other thing is in MM, a principal may get like 1-3% of the pool, that's obviously not the case for MFs. That's a function of smaller sized funds + a lot less IPs in MM funds. For carry at MFs, would you say principals are at 25-50bps, and partners 75-150bps? Let's not forget, MF performance (in terms of MOIC) has been eh -- like 1.5x on those $20bn funds. Not 2x. That's still a shit ton of money going around, and who cares.
Last point: for public MFs, half of the carry goes to shareholders...do principals/partners make this back through RSUs, more bps of carry, or nothing? Thx in advance.