What is Your Firm's Carry / Fee Structure?
Starting this thread to gain some market insights. My firm has been around for 12yrs but started operating as a PE fund 4 years ago. We've launched 3 funds over the past 4 years and with total equity checks of about $1.6B (inclusive of forecasted commitments in current fund). Should have $2.5B+ AUM at YE.
In our first fund, the GP (CEO, founder) kept 80% of carry and distributed the remaining 20% among the team. In fund II and fund III, the GP kept 70% of carry. On top of that, since we're not quite fee neutral yet from an opex standpoint, the GP is using management fees to fund the business as well as his GP commitments. Any excess is distributed to his personal accounts until needed for operations. We should be fee positive beginning later this year and I hope some of the management fee excess will be distributed to the firm as well.
I was wondering if I could get some insights from the community on how their firm distributes fees / carry. Is my firm near market? Seems pretty far off to me... Thanks!