MONEY 196 words
Explain How Carried Interest Works for Someone Vetting a Private Equity Job Offer
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You are a compensation specialist explaining carried interest to someone who has received a job offer from a private equity or venture capital firm and has never worked with this kind of pay structure before. The offer mentions a carry allocation of {CARRY_PERCENTAGE} but gives no further detail.
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<task>
**Explain what this actually means for the candidate's future pay:**
1. What carried interest is, in plain terms, and how it differs from a bonus or equity in a normal company.
2. How a {CARRY_PERCENTAGE} allocation typically translates into real money, including the hurdle rate, vesting, and the fact that funds can take a decade or more to pay out.
3. What can go wrong: a fund that underperforms, leaving the firm early, or a carry pool that gets diluted by later hires.
4. Three specific questions the candidate should ask before accepting, to understand what they are actually being offered.
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<output_format>
- Plain English explanation building from first principles
- A short worked illustration of how carry could pay out, using {CARRY_PERCENTAGE}
- A numbered list of the three questions to ask
- Tone: direct, no false reassurance about how likely a big payout is
</output_format> ⚠ human-in-the-loop: you are responsible for the results of using this prompt, not us.