Key Takeaways
- • Allvue Systems' 2026 Alternatives Compensation & Carry Survey, conducted with Major, Lindsey & Africa, finds that only 11% of alternative investment firms say their carry administration capabilities are ahead of peers.
- • Fifty-eight percent of surveyed firms still rely on Excel spreadsheets to administer carry, and 42% lack well-defined compensation bands by role or level.
- • Only 43% of firms provide Total Rewards Statements, and 56% rely on discretionary carry to some extent, raising trust and consistency concerns for employees.
- • Increased competition for talent (47%) and rising employee demand for transparency (46%) are the top factors firms expect to shape compensation and carry programs in the near term.
- • The survey is the first in a three-part insights series, with later reports covering carry program participants and a webinar comparing administrators and participants.
Summary
Allvue Systems, LLC released its 2026 Alternatives Compensation & Carry Survey, conducted in partnership with Major, Lindsey & Africa, according to a Business Wire release. The research concludes that half of the alternative investment firms surveyed do not manage compensation with the same rigor they apply to other core business functions, a shortfall the firm says puts talent retention at risk as competition for experienced professionals intensifies. Only one in 10 firms believe their compensation and carry administration leads the market.
The survey identifies a gap in employee transparency. Fewer than half of firms (43%) provide Total Rewards Statements, which consolidate salary, bonus, carry, and co-investment. Only 36% invest in education and training on carried interest, and 24% offer formal feedback forums on carry programs. Just 16% say employee sentiment is a meaningful input into compensation decisions. More than half of firms (56%) rely on discretionary carry to some extent, meaning outcomes depend on individual judgment rather than defined criteria, which the report says can erode employee trust.
Operationally, the survey points to manual processes and fragmented data as key constraints. Per the findings, 58% of firms still administer carry in Excel, 51% cannot confirm their compensation practices are data-driven, and 42% lack well-defined bands by role or level. Only 18% believe they lead peers in compensation planning.
Allvue's Richard Change, Head of FirmView, said carry and compensation management is "not being taken seriously enough" as talent becomes more mobile. Allison Rosner, Managing Director with MLA's In-House Counsel Recruiting group, said candidates increasingly evaluate how firms structure and communicate carry and long-term incentives. Respondents expect talent competition (47%), transparency expectations (46%), and the difficulty of aligning incentives with returns and effort (35%) to shape their programs. The release notes that the report is the first in a three-part series.
The survey identifies a gap in employee transparency. Fewer than half of firms (43%) provide Total Rewards Statements, which consolidate salary, bonus, carry, and co-investment. Only 36% invest in education and training on carried interest, and 24% offer formal feedback forums on carry programs. Just 16% say employee sentiment is a meaningful input into compensation decisions. More than half of firms (56%) rely on discretionary carry to some extent, meaning outcomes depend on individual judgment rather than defined criteria, which the report says can erode employee trust.
Operationally, the survey points to manual processes and fragmented data as key constraints. Per the findings, 58% of firms still administer carry in Excel, 51% cannot confirm their compensation practices are data-driven, and 42% lack well-defined bands by role or level. Only 18% believe they lead peers in compensation planning.
Allvue's Richard Change, Head of FirmView, said carry and compensation management is "not being taken seriously enough" as talent becomes more mobile. Allison Rosner, Managing Director with MLA's In-House Counsel Recruiting group, said candidates increasingly evaluate how firms structure and communicate carry and long-term incentives. Respondents expect talent competition (47%), transparency expectations (46%), and the difficulty of aligning incentives with returns and effort (35%) to shape their programs. The release notes that the report is the first in a three-part series.
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