So what is the impact of carry dollars in investment firm compensation? Let’s dive into the data.<\/p>\n\n\n\n Chart 1<\/strong> shows median carry dollars at work across all active funds with an AUM of more than $1 Billion. We see the following:<\/p>\n\n\n\n Managing General Partners<\/strong> saw an increase in the median carry dollars at work from 2022 to 2024 – reinforcing the high earning potential at senior levels.<\/p>\n\n\n\n Decrease in Senior Roles<\/strong>: Senior Managing Directors\/Sr. Partners, Managing Directors\/Partners, and Director\/Principal roles have seen a decrease in median carry dollars at work since 2022.<\/p>\n\n\n\n Stable for Competitive Roles<\/strong>: Carry dollars at work have stabilized for roles like Senior Associates and Associates, indicating a steady compensation landscape at these levels.<\/p>\n\n\n\n Chart 2<\/strong> shows median carry dollars at work across all active funds with an AUM of less than $500 Million. We see the following:<\/p>\n\n\n\n Decrease for Managing<\/strong> General Partners and Sr. Managing Directors\/Sr. Partners: <\/strong>Median carry dollars at work decreased for Managing General Partners since 2022 from $7,500,000 to $6,005,000 in 2023 and $6,000,000 in 2024. For Sr. Managing Directors, carry dollars at work decreased from 2022 but stayed the same from 2024. <\/p>\n\n\n\n Increase at Junior Levels:<\/strong> Managing Director\/Partner saw an increase in carry dollars at work since 2022 – moving from $2,200,000 to $2,625,000 at the median. <\/p>\n\n\n\n Stability in Lower Ranks<\/strong>: Similar to larger funds, compensation remained stable or slightly decreased for Director\/Principal, Senior Associate, and Associate roles.<\/p>\n\n\n\n Chart 3<\/strong> shows median carry dollars at work across all active funds for Sr. Managing Directors\/Sr. Partners based on AUM. We see the following:<\/p>\n\n\n\n Stability Under $500 Million<\/strong>: Sr. Managing Directors\/Sr. Partners have seen stable carry dollars since 2022 in firms with under $500 Million AUM.<\/p>\n\n\n\n Growth in Mid-Sized Funds<\/strong>: There was a significant increase in carry dollars for Sr. Managing Directors\/Sr. Partners in the $500 Million to $999.9 Million AUM bracket.<\/p>\n\n\n\n Decrease in Largest Funds<\/strong>: However, the data shows a decrease in median carry dollars at work for Sr. Managing Directors\/Sr. Partners in firms with over $1 Billion AUM.<\/p>\n\n\n\n The bottom line:<\/strong><\/p>\n\n\n\n According to PitchBook<\/a>, “US venture fund returns remain negative but are trending up once again, a hopeful sign for a struggling fundraising market after a sustained period of portfolio markdowns.” This shift suggests a crucial moment for investment firms to reevaluate their compensation strategies, including around carry dollars at work. ![\"Median](\"https:\/\/jthelander.com\/wp-content\/uploads\/a6de2288-96e4-a920-dd2f-e20e3c6e2cb4.png\")
<\/figure>\n\n\n\n![\"bullet\"](\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\")
<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n
The full carry dollars at work report and data are available through a paid subscription to the Thelander online platform. You can trial the platform and access a free subset of data by participating in the Thelander-PitchBook Compensation Survey<\/a> today. Or you can schedule a demo<\/a> to view what’s included and get your specific comp questions answered for your firm and\/or portfolio companies.<\/p>\n\n\n\n