Considering hedge fund exit but confused by carry structures. What metrics matter beyond base/bonus? How do tiered waterfalls actually work in practice? Any tools to benchmark total comp packages against lost banking promotion timelines? Especially curious about crypto/quant fund variations.
Key considerations: 1) Hurdle rates for carried interest 2) Clawback provisions 3) Realization timelines. A $500k HF offer with 5-year vesting often underperforms banking MD track. Use NPV models comparing guaranteed vs contingent comp - I’ve seen 30% variance in expected value across similar-looking packages.
my friend used a benchmarking tool that showed quant funds pay 2x cash comp but zero carry. banking bonus still better for 1st 3 yrs?? #confused
2023 data shows median HF PM comp: $285k base + 12-15% PnL allocation. Traditional banking VP: $325k all-in. Critical differentiator: top quartile HF compensation exceeds $1.2M at 4Y mark vs banking’s $650k. Use monte carlo simulations for carry valuation under different AUM growth scenarios.