Carried interest vesting is diverging — and the gap between VC and PE is widening. Using carried interest data from the Thelander platform, we’re seeing a clear split in how both VC and PE firms are structuring vesting times. At Venture Capital firms, vesting is getting longer.
- Over the last three years, VC has trended toward extended vesting schedules for carried interest.
- Three- and six year vesting structures have become less common, signaling that “quick” vesting structures are falling out of favor.
- Ten year vesting has grown meaningfully, up ~ 5% from 2023.
At Private Equity firms, vesting is getting shorter.
- PE has moved in the opposite direction with vesting times becoming shorter over the same timeframe.
- Five year vesting has seen a sharp drop, falling by ~9% in just the last year.
- Four year vesting has increased by ~7%
The takeaway: With both fundraising and exits taking longer, venture firms are using longer vesting to reinforce long term alignment. Private equity firms are concentrating economics over a tighter window — making it more important than ever to benchmark your carried interest percentages to market.
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