{"id":279279,"date":"2025-01-28T18:34:00","date_gmt":"2025-01-29T02:34:00","guid":{"rendered":"https:\/\/jthelander.com\/?p=279279"},"modified":"2025-01-28T18:34:00","modified_gmt":"2025-01-29T02:34:00","slug":"how-are-long-term-incentives-evolving-at-cvc-units","status":"publish","type":"post","link":"https:\/\/brightturn.io\/?p=279279","title":{"rendered":"How Are Long-Term Incentives Evolving at CVC Units?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Welcome back to the first\u00a0Thelander Digest of 2025. Nearly a year has passed since we last delved into\u00a0<a href=\"https:\/\/mailchi.mp\/jthelander.com\/marchcvcdigest\" target=\"_blank\" rel=\"noreferrer noopener\">long-term incentives at CVC units<\/a>. This month, we\u2019re revisiting this crucial topic with an enhanced focus on which incentives are being utilized now vs. in 2023 and 2024 and whether on-balance-sheet or off-balance-sheet makes a difference.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition to base pay and cash bonuses, CVC units employ a variety of incentives to attract and retain top talent. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Corporate stock only<\/li>\n\n\n\n<li>Carried interest only<\/li>\n\n\n\n<li>Shadow\/phantom\/synthetic carry only<\/li>\n\n\n\n<li>A combination of corporate stock and carried interest<\/li>\n\n\n\n<li>A combination of corporate stock and shadow\/phantom\/synthetic carry<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/b6bca079-8d9d-4894-6239-ffc35d199e25.png\" alt=\"What are the other incentives in addition to base pay and cash bonus?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 1&nbsp;<\/strong>looks at other incentives in addition to base pay and cash bonus and how they&#8217;ve changed YoY.&nbsp;We see the following:<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Corporate Stock Only:<\/strong>&nbsp;Increased in popularity by 2% from 2024.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Carried Interest:<\/strong>\u00a0Consistently increased by 4% or\u00a05% since 2023.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Shadow\/Phantom\/Synthetic Carry (SPS):<\/strong>\u00a0Experienced a decrease for the first time this year by 2%.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Combination of Corporate Stock and Carried Interest:<\/strong>&nbsp;Consistently decreasing since 2023.<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/502ad86a-9020-9700-40c6-6db326d7df0f.png\" alt=\"What are the other incentives in addition to base pay and cash bonus?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 2<\/strong>&nbsp;looks at firm&nbsp;structures that are&nbsp;<em>not<\/em>&nbsp;off balance sheet or separate legal entities.&nbsp;We see the following:<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Shadow\/Phantom\/Synthetic Carry (SPS) Only:&nbsp;<\/strong>Consistently decreasing YoY at by least 2% &#8211;&nbsp;from 17% (2023) to 12% (2025).&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Combination of Corporate Stock and SPS:<\/strong>&nbsp;Has doubled in popularity since 2023 &#8211; from 6% to 12%.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bd5eb8b7-68c2-53a4-a9b1-7e459b29c74f.png\" alt=\"What are the other incentives in addition to base pay and cash bonus?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 3<\/strong>\u00a0looks at firm structures that are\u00a0<em>off\u00a0<\/em>balance sheet or separate legal entities.\u00a0We see the following:<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Corporate Stock Only:&nbsp;<\/strong>Increased since 2023.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Carried Interest Only:\u00a0<\/strong>Increased since 2023.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-278614\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Combination of Corporate Stock and Carried Interest:<\/strong>\u00a0Consistently decreasing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Bottom Line:\u00a0<\/strong><br>Carried interest as standalone incentive has consistently risen since 2023, irrespective of AUM or structure. Our consulting services can assist in establishing a carried interest program tailored to your needs. Additionally, by participating in our compensation survey, you gain access to carried interest percentages for various positions for the next 12 months on our proprietary platform. For more detailed information on our consulting offerings, please respond to this newsletter or\u00a0<a href=\"https:\/\/calendly.com\/morganthelander\" target=\"_blank\" rel=\"noreferrer noopener\">schedule a meeting here<\/a>.<\/p>\n\n\n\n<p class=\"has-text-align-center btn-post wp-block-paragraph\"><a href=\"https:\/\/survey.jthelander.com\/surveys\/1003\/\" target=\"_blank\" rel=\"noreferrer noopener\">Participate in the Thelander-PitchBook CVC Compensation Survey For More Comp Data<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Thelander Digest is powered by the Thelander Investment Firm dataset. You can trial our platform by participating in the\u00a0<\/strong><a href=\"https:\/\/survey.jthelander.com\/surveys\/1003\/\" target=\"_blank\" rel=\"noreferrer noopener\">Thelander-PitchBook CVC Salary Increase &amp; Bonus Survey<\/a>.\u00a0<br>By inputting your data, you will be able to secure your free overview report and also access a subset of compensation data for the next 12 months.\u00a0To see what&#8217;s included in your free subscription, schedule a\u00a0<a href=\"https:\/\/calendly.com\/morganthelander\/30min\" target=\"_blank\" rel=\"noreferrer noopener\">demo<\/a>.\u00a0You can also reach us by phone at\u00a0+1.305.793.8605\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome back to the first\u00a0Thelander Digest of 2025. Nearly a year has passed since we last delved into\u00a0long-term incentives at CVC units. This month, we\u2019re revisiting this crucial topic with an enhanced focus on which incentives are being utilized now vs. in 2023 and 2024 and whether on-balance-sheet or off-balance-sheet makes a difference.\u00a0 In addition [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[6,3],"class_list":["post-279279","post","type-post","status-publish","format-standard","hentry","category-newsletter","tag-cvc","tag-newsletter"],"_links":{"self":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/279279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=279279"}],"version-history":[{"count":0,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/279279\/revisions"}],"wp:attachment":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=279279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=279279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=279279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}