PER’s Managing Director, Gail McManus, explores the benefits and potential complications of carried interest in this month’s Private Equity International. An essential part of the compensation package in the early days of private equity, Gail explains why carry still has a role to play in today’s larger funds.
Drawing on 20 years of experience negotiating compensation packages and on data from PER’s recently published Private Equity Investment Professionals Compensation Report, Gail answers some of the most common questions on carry, including: who gets it, how much, is it a golden handcuff and can it disincentivise succession.
Gail explains that making decisions on fair allocation has its challenges whilst ultimately emphasising carry's enormous potential to align interests and incentivise teams.
Click here to read the full article in Private Equity International.
Click here to view data on carry from PER’s Private Equity Investment Professionals Compensation Report in Private Equity International.
To find out how you can access our full compensation report, contact PER .