How Managing General Partner Compensation Changes as AUM Grows at VC Firms

You’re a Managing General Partner of a venture firm and your AUM grows from $50 – $99 million to $1 – $1.9 billion…How do you expect the mix of cash and carry to change? The Thelander Comp Planning tool has the answer. Using real-time data from the Thelander platform:

• We see a clear increase in compensation around $500 million AUM for Managing General Partners. The median and 75th percentile in total cash stays relatively flat at lower AUM levels, then step up sharply once the $500 million mark is crossed.
• Median carried interest percentages decline steadily as AUM scales, before reaching their low in the $500 – $999.9 million range.
• At the 75th percentile, carry starts to come down earlier, from the $100 – $249 million band. But Managing General Partners at the smallest firms still maintain around 50% of the carry pool – likely because they have not yet added partners or shared carry in any meaningful way with staff roles.

Thousands of firms rely on the Thelander Comp Planning Tool to model the evolution of their own firm to understand exactly how much cash and carry to allocate to their teams. To see how your current mix of cash and carry compare to market for no charge, fill out the Thelander x PitchBook Investment Firm Compensation Survey today. The more data you contribute, the more insights you receive. Get access to what you give for no charge.

Categorised in: Data Drops

This post was written by jthelander