Carried Interest

“They are generally using short-term floating rate financing And they have shorter term hold because they're trying to generate carried interest income to pay themselves. And then lastly, I would say they don't have as much personal capital invested. So the ali…”

“The carried interest on a five billion dollar fund compounding at 15% return is a lot more than the carried interest on a five hundred million dollar fund compounding at a 30% rate return. Plus, obviously, the fees are 10 X.”

“I always ask them, can you explain to me why that's not ordinary income? And they can't. It is ordinary income.”

“You can think of carry similar to the way a startup employee vests equity, right? So they, they're given an equity grant. That equity grant vests over some time period over multiple years. You can think of venture carry as similar. And so the reason for that, …”

“So Cary goes to the firm. And then we remunerate people through, through bonuses, which is a synthetic carrier, I suppose.”

“I have no problems paying income tax on carried interest. Like, I think it's income, right? I mean, it's not my capital work doing it. It's because I'm doing my job.”

“The only way to win in a world where your exits are not that great is to actually generate money via fees. Even though that fees are taxed at current income, that's the way to win in venture. It's not carry, it's by fees.”

“I've seen An explosion of short vesting schedules of two to four to five years, and it's just not great alignment. I don't want a GP to be able to leave after two years, get a hundred percent of their carry, sit on the beach, and now the team or the LP base ha…”

“Here you are not entitled to anything until you've returned. Not just the capital that you invested in totality, but also the fees you consume during that 10 year period, you return that too.”

“I participate in funds, so I'm a beneficiary as well, but it's wrong.”

“You probably should tax carried interest like income tax. That would write, that would like break that structurally different incentive mechanism, and then it would defuse talent elsewhere.”

“I don't think we need that extra tax advantage. I carried interest when you're managing assets to motivate our economic behavior.”

“The split of the carry in any individual fund, while it tends to reflect ownership in the management company, these are two wholly different entities. And so what you often had and what you had with all these firms, these old firms back at this point in time, …”

“Owning the majority of something that sells for a decent chunk is, is just better financially.”

“Carry is going up. Fees are staying the same regardless of fund size.”

“We return all the capital first to our investors, and then we get into the carry.”

“But if you're able to at least get that second fund in after buying a stake, you're pretty much guaranteed to get your money back just off management fees and some of the maybe in ground carry.”

“We start off with our investment teams, for instance they're in a pool AXO structure, and we get wonderful incentives for them, which include ability to participate in the sale, carried interest with our associates and analysts, which I think is somewhat uniqu…”

“We all know that the alternative markets have generated this optionality, which will be by way of carried interest, incentive fees, that people would put as a The alignment of interest, I actually think, you know, it's a fairly cheap option compared to any oth…”

“The term carry, which is sort of how VCs get paid, the so-called carried interest, which is like the 20 or 25% that you make of the profits that, that you share. The term carry actually was the percentage of the whale that the ship carried. It was literally ph…”

“There is no carry on the actual sale of the farm, and there's no carry at some artificial Based on a third party mark to market that no one can believe, right? We do a mark to market on a yearly basis. Every three to four years, there's an external third party…”

“The, there's a term in venture capital in hedge funds called carry, which is basically called carried interest, which is the sort of profit participation that the VCs or hedge fund managers make. The term carry actually comes from whaling in the 1600 off, like…”

“And it actually turns out the origin of the term carried interest actually is from whalers in the 12th century is where it first originated.”

“Carry changed. Funds were getting 30, sometimes even 40% carry on these deals, because there was liquid so quickly, and people couldn't put enough money into the space”

“In fact, what you're seeing is a lot of people are now kind of going to higher carries after hurdles. So there'll be a 20 carry up to a two and a half or three X, and then it'll kick up to a 30 carry. And I fought that for a while, and it, you know, it's sort …”

“First of all, we're going to take a chunk of our carry, and we're going to make it accessible to what we call our community, which is the cause.”

“I mean, you know, we were promised carry, which we never got.”