We at BVP dedicate 10% of our total carried interest pool (i.e., our primary means of compensation as investment managers) in every investment to the non-management team employees, each of whom is valued by us and critically important to our continued, collective success. This is our Share the Gains program, which ensures that all employees of a company—not just senior management teams and the private equity owners who have separate means of compensation—share in the benefits from our united efforts.
As carried interest is our compensation as investment managers, Share the Gains does not detract from our investors’ returns or executive management team members’ compensation. In fact the opposite, we believe Share the Gains only enhances our community’s joint success. This has been recognized by a number of our limited partners who have also chosen to dedicate a portion of their profits to Share the Gains.
Simply put, we believe this is the right thing to do and hope our lead will inspire other managers to make commonplace what is currently a unique model to BVP.