Carry allocation and vesting
From the fund's waterfall to each partner's points.
How is carried interest allocated within a GP?
Carry paid by the fund goes to a carry vehicle, whose own agreement allocates 'points' to partners and employees, sets vesting schedules and forfeiture rules, and decides how escrow and clawback obligations are shared.
Two documents
The LPA decides how much carry the GP earns; the carry vehicle agreement decides who gets it. Both must be modelled.
Vesting and leavers
Points usually vest over several years. Good and bad leaver provisions determine what departing partners keep.
Clawback sharing
If carry is clawed back, each recipient's share of the obligation follows their allocation — so allocations must be kept historically, not just currently.
Questions
Does FUN/D track carry points?
Yes, with history and vesting schedules.
Related reading
Carried interest vesting · Management company accounting · Carry escrow
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