Infographics: Where To Make The Big Bucks In PE/VC
So, let’s say you want to make more money. What do you do? Here's some advice: Head for the firms with the greatest assets under management. It's simple arithmetic. The more assets under management, the more a firm rings up in management fees and, in the case of buyout firms, deal-related fees (those not handed over to LPs). Bigger transactions also translate to bigger profits when it comes time to doling out carried interest. Firms managing more assets tend to have more mouths to feed, but rarely do firms ramp up their payrolls at the same pace they do their fund sizes. The disparities in compensation, as the infographics below show, are dramatic—and a source of ongoing angst for LPs, who worry that partners will be tempted to raise bigger funds than they can wisely invest.
