One in three investment firms gift vertical slices of carry into trusts. Is yours one of them?

Carried interest is one of the most powerful levers in venture capital and private equity compensation. In our recent webinar with GetDynasty.com, we discussed putting part of your carried interest (and committed capital) into vertical trusts. Here’s what the data says, and what you need to know before you act.

When it comes to gifting vertical slices of carry into trusts, roughly one in three firms — both VC and PE — currently permit it. But the patterns shift meaningfully by firm type and AUM.

PE firms with less than $500 million in AUM are more likely to allow it than their larger counterparts.

In VC, the practice is more common at the $500M–$999.9M range.

Before you decide how much of your carried interest and committed capital to gift to maximize the tax benefits of QSBS, you first need to know how competitive your current mix of cash and carry is relative to real-time market data. That’s where Thelander comes in.

By participating in the no-cost Thelander x PitchBook Investment Firm Compensation Survey, you’ll access real-time comp data for all the job titles you input, including carried interest percentages by type of firm. Prefer a white glove experience? Our team can input your data for you. Either way, get started today: survey.jthelander.com

Categorised in: Data Drops

This post was written by jthelander