I work in growth equity and am in the fortunate position where several of the investments I sourced are tracking really nicely. They're outperforming our internal benchmarks and I have clear attribution to these successes, and combined are likely to be an outsized source of returns.
I'm at a mid-size firm in SF/NYC and have a decent basis (mid-six figures) in carry (calculated as fund-size * carry pool [20%] * carry %], but my guess is it's a much smaller percentage than other partners and I'd like to negotiate a higher percentage.
This maybe a dumb question, but how the hell is this done at a senior-ish, but not partner level? Do I have to wait for the next fund to get additional carry allocation? I think my partners would be receptive given the performance but frankly, I also have no idea what etiquette here looks like. Do I wait until these deals actually return cash in 3-4 years and negotiate then?
There's several good benchmarks on carry for PE firms but less so for growth equity, so I'm curious how other folks have dealt with this.
My plan is to catch our GP on a good day and ask for a higher number, ideally showing some benchmarks.
I don't want to come across as greedy or ungrateful, but honestly, I just. want to see how my partners deal with the conversation. If we're unlikely to see eye to eye or have an open discussion, I'm likely to want to raise my own fund/lateral in 3-5 years vs. grinding to make partner here ASAP.