𝗙𝘂𝗻𝗱 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀’ 𝗖𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻: 𝗠𝘆𝘁𝗵 𝘃𝘀. 𝗥𝗲𝗮𝗹𝗶𝘁𝘆

Launching a fund looks glamorous. The reality? It can take years before founders see a steady paycheck.

In the latest 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗪𝗶𝘀𝗱𝗼𝗺 episode, I sat down with 𝗦𝗶𝗺𝗼𝗻 𝗗𝗮𝘃𝗶𝗲𝘀 (𝗙𝗼𝘂𝗻𝗱𝗲𝗿 & 𝗖𝗘𝗢, 𝗔𝘂𝗰𝘁𝗮 𝗚𝗿𝗼𝘂𝗽) to unpack how emerging managers should 𝘳𝘦𝘢𝘭𝘭𝘺 think about getting paid.

𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:
• 𝗘𝘅𝗽𝗲𝗰𝘁 𝗮 𝗹𝗼𝗻𝗴 𝗿𝘂𝗻𝘄𝗮𝘆: Many first-time GPs won’t match prior salaries for years; plan household expenses accordingly (think ~18 months of runway).
• 𝗧𝗵𝗿𝗲𝗲 𝗽𝗵𝗮𝘀𝗲𝘀: 1) 𝘞𝘩𝘺/𝘦𝘥𝘨𝘦 𝘧𝘪𝘳𝘴𝘵 (optimize for carry & firm EV), 2) 𝘙𝘦𝘷𝘦𝘯𝘶𝘦 (pay vendors & team first), 3) 𝘕𝘦𝘵 𝘪𝘯𝘤𝘰𝘮𝘦 (only then start a modest draw).
• 𝗦𝗺𝗮𝗹𝗹 𝗳𝘂𝗻𝗱𝘀, 𝘀𝗺𝗮𝗹𝗹 𝗳𝗲𝗲𝘀: A $30M fund at “2/20” won’t fund a full team + founder comp quickly—be realistic on ops budgets.
• 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 𝘄𝗶𝗻𝘀 𝘄𝗶𝘁𝗵 𝗟𝗣𝘀: Milestone-based comp (e.g., tiny draw at first close; step-ups at net income/next closes) builds trust.
• 𝗦𝗶𝗱𝗲 𝗴𝗶𝗴𝘀? 𝗠𝗮𝘆𝗯𝗲: Acceptable if disclosed and structured so the firm remains the priority.
• 𝗦𝗰𝗮𝗹𝗲 𝗺𝗮𝘁𝘁𝗲𝗿𝘀: Rough guide—around $𝟱𝟬𝗠 𝗔𝗨𝗠 at 2% begins to make modest monthly comp plausible; real upside is still in 𝗰𝗮𝗿𝗿𝘆 and eventual 𝗲𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲 𝘃𝗮𝗹𝘂𝗲.

If you’re an emerging manager (or advising one), this is a must-watch reality check.

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