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How is an associate deemed to be the ‘right person’?
Carry starts at VP at my MM firm. 5 year straight line vest. I don’t have carry yet but market approach for valuing carry is to assume the fund hits a 2.0x MOIC, and derive a valuation from that
Depends on past performance and trajectory at the firm
Started to collect carry as associate. Now first year VP and total carry across vehicles is c.$5mm based on conservative multiples vs historical performance.
Also now have a few hundred Ks of GP commitments (money paid in for me I can invest in deals I want and I get at exit + the perf).
Sorry can’t say - this becomes too precise
Starts at my firm as an associate for high potential employees and is usually worth about $150-200k …cliff vests after 3 years or at fund realization.
You answered all points except the “how much” 😄
Very cool and very good for you ! One thing to take into account is how often do you raise funds ?