What is "market" for carry in a first time fund?
Title is self explanatory! What should the split look like of the total carry pool?
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Really depends if you took any material risks/supported the founders in raising the fund/joined prior to first close or came in after the manager has been de-risked. If the latter, probably just a slight premium to any other established fund? If you take on fundraising risk, then it's fair to expect more... whether that's 50%, 100%, 200% more is probably very much dependent on how valuable you are to the founders and how well you negotiate for yourself.
Friend joined a well new fund with ~$500m first close and joining as a senior associate (with VP promote in a year) and got 200bps so take that for what its worth
Founders had MF/UMM backgrounds
Solid carry economics for a Senior Associate. Any idea on the cash piece?
200bps is a little higher, but for a first time fund and perhaps a key Senior Associate/VP hire, that isn't crazy out of market. In general Analysts will get nothing, Associates will likely get nothing as well, if they do, 25 - 100bps would be the range I'd anticipate. Senior Associate/VP, I'd think 100 - 300bps, depending on fund size, experience of the candidate etc. Above that, it's probably pretty bespoke for a principal/partner. If you were joining a new fund as a principal/partner, you're basically a founding member, so I'd imagine you're getting a pretty big chunk of the carry.
Joining as a SA/VP, the real thing you should be thinking about is, how you can do well for a couple of years and then be a principal for the next fund.
One of my friends joined a ~$400 MM first fund as a senior associate and received 250bps (possible VP promote in 6 months). Friend was a senior associate at a MF prior to joining and the founder also had a MF background.
What is the market rate for comp at a fund of that size for analyst/associate?
Zero to 1%
https://www.heidrick.com/en/insights/private-equity/2021-north-american…
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