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Do you get carry? Also, it sounds like you don’t have an offer yet?
I would assume carry comes at more senior levels, but I’ve always heard to discount carry since most people never realise it anyway (you need to be at the firm long enough for the fund to fully liquidate, and the fund needs to pass the hurdle). Essentially a lot of ifs.
Excluding the carry, do you think the offer is worth taking?
I’m assuming you have an offer for an associate role? Once you get a promotion to VP level, there’s a greater chance that you do get carry but not guaranteed based off the fund. Once you get carry I would say the PE Ops is worth it long-term.
Yep, but what I’ve heard from most people in the industry is to not factor in carry into comp as most people never realise it
That is not really true. Yes, carry is LT and uncertain, but depends on vesting schedule, not fund liquidation. You only get the check when you liquidate, but you are entitled to the $ once it vests, like any other stock plan.
Also, the hurdle is not high if you are in a decent fund and there is a catch mechanism. 8-10% irr hurdle = 3rd quartile fund.
Not sure about the UK model, but in the US it gets exponentially higher as you progress.
I think about it as a retirement plan, not an annual bonus.