How is carry calculated?
Quick question that I have been wondering for a while. Say a VP at a PE firm is awarded "carry" in the firm. Lets just say its 50bps for argument's sake. $1 billion fund, 2% management fee and 20% carried interest. What does that 50bps get the VP in terms of comp? When is it distributed? Does that act as their bonus or is that on top of the bonus?