Megafund Carry

yituraxi's picture
Rank: Monkey | banana points 42

What does carry look like at all levels at a megafund? It seems like most of the posts on here mention VP carry of 1-2% on smaller <$1B funds. I'm curious what percent of the carry you can expect from associate onwards at a MF in both investment roles and non-investment roles (IR/Fundraising, CFO, General Counsel, etc.). Does it usually work out to be a similar dollar amount to small funds (i.e. a tiny % because there are so many mouths to feed, but the carry pool is so large it evens out)?

Private Equity Interview Course

  • 2,447 questions across 203 private equity funds. Crowdsourced from over 500,000 mem.
  • 9 Detailed LBO Modeling Tests and 15+ hours of video solutions.
  • Trusted by over 1,000 aspiring private equity professionals just like you.

Comments (9)

Feb 20, 2019

Hey yituraxi, I'm the WSO Monkey Bot and I'm here since nobody responded to your thread! Bummer...could just be time of day or unlucky (or the question/topci is too vague or too specific). Maybe one of these topics will help:

  • 1st Year Mega Fund (MF) Associate Compensation a Mega-Fund like KKR, TPG, Silver Lake, or Apollo. I've heard anything from $250K to $400K. Can anyone ... salary varies from firm to firm, mega fund associates can expect to make between $200 k- $300 k. ... Equity Analyst wrote: Over the two years in a standard associate program at a MF (after completing 2-3 ...
  • Why even bother going to a mega-fund? I've read some comments and posts about how people pick IB groups based solely on MF ... to go to another sweatshop PE fund that will kick you out after 2 years for B-school. I thought the ... a decent pe fund and still get into a top MBA program. IBD PE to Monday, May 2, 2016- 8:00pm ...
  • PE mega funds with real estate focused fund Which megafunds have real estate groups? What are some of the best real estate focused groups ... among these megafunds? to Tuesday, February 5, 2019- 11:00am ...
  • Going from MM Investment Bank to Mega-Fund move laterally to a BB or can I work for a smaller fund for a couple years and then make my move? Do ...
  • What is the appeal of mega-funds? equity hedge fund megafund ... spend all their time worrying about getting into the top group at whatever bank so they can move to mega ... funds in private equity or big hedge funds, where the lifestyle can be close to if not just as bad as ...
  • Mega Fund Placement out of BB LevFin I have a good chance in attracting head hunters at Mega-Funds? Assuming semi-target state school, 3.75+ ...
  • Mega-Fund Search Firms Bain. Thanks, Roark Headhunters: Getting Placed into private equity megafunds. The following 5 firms are ... equity fund? Try our comprehensive PE Interview Prep Course. Our course includes 2,447 questions across ... 203 private equity funds. The WSO Private Equity Interview Prep Guide has everything you'll ever ...
  • Lateral to the TOP IB GROUP(NY) or PE arm of BB, best path to Mega Fund? #consulting Private Equity Business School PE MEga fund MF PE NYC NY New York Top GS TMT MS CS DB UBS oncycle ... tech, Qatalyst, BAML sponsors, JPM SF). I went through on-cycle this year but couldnt get any MF in NY ... interviews (maybe because I was in WC). My goal is to eventually work at a MF in NY. I have two offers and ...
  • More suggestions...

If those topics were completely useless, don't blame me, blame my programmers...

Feb 23, 2019

Interested as well

Feb 24, 2019

Also would like to know.

Feb 24, 2019

You typically do not get carry as an associate in a megafund
I would split megafunds in two - those who pay carry (rare) and those who will pay you a lot more upfront in cash though it will take time to get some carry

Overall, at least in LDN, you would not expect to get carry in most large cap funds except in small exceptions

Feb 24, 2019

Sure, but how about at the VP level and above? Assume there is carry there.

Learn More

9 LBO Modeling Tests, 10+ hours of PE Cases and 2,447+ interview insights across 203 private equity funds. The WSO Private Equity Interview Prep Course has everything you'll ever need to break into the competitive PE industry. Learn more.

Mar 9, 2019

bump

Mar 10, 2019

Please elaborate on what you mean by "carry" based on position? Most positions don't have a direct relationship to performance. Definitely depends on the fund and in a good year, everyone gets rewarded, but that is 100% discretionary for all positions outside investment team.

    • 1
Mar 9, 2019

I mean carry as in an allocated percentage of the carried interest pool. The question is once you reach the VP level and above at a MF, how much carry in % and $ amount do you make at each level? Do director level investment professionals still not get any carry at MFs and just get large bonuses instead?

As for non-investment team positions, I imagine there are a decent amount of senior positions (CFO, General Counsel, Head of IR/Fundraising) that would get a small allocation (that I would imagine would be larger than say an investment team VP's allocation would be).

Mar 12, 2019