The 7 problems with carry allocation

There are many ways to get it wrong when deciding who is 'in the carry'; here are seven things to avoid.

How carry is allocated across your team; it’s a controversial area. It can be “less of an exercise in rationality and more a social process or even a ‘bun fight’,” writes former Baird Capital boss-turned-headhunter Simon Havers. In this briefing, he dissects some common mistakes that firms make when allocating carried interest.

Also: Lenders are pushing back – in a small way at least – against some of the more extreme use of EBITDA addbacks, according to senior editor for Private Debt Investor Andy Thomson. Research shows that in 2017 almost half of all senior debt facilities allowed uncapped EBITDA adjustments. Last year, this fell to a third and, in the first half of this year, took a further tumble to less than 20 percent, notes Thomson.

Email prepared by Toby Mitchenall.