No Carry? Poor Baby …

Interesting post about VCs with 10+ years experience never having received a carry check.

Definition of carry: The carried interest is the percentage of profits that a fund earns as a performance incentive – it’s a concept that applies to venture firms, buyout funds, real estate and hedge funds alike, among others. The typical carried interest ranges from 20-25%, although some firms are able to get as high as 30%.

In the last 5-6 years, very few funds have actually returned profits. Hence, VCs who entered the business at the tailend of the nineties boom and have clocked a significant number of years, have not received any carry.

Never mind the large base salaries, though, which continue to be very large!