Carry, Co-Invest & EMI Modelling — For Asset Managers, Wealth Managers, and Family Office Leaders
Key Takeaways & Market Shifts for Asset Managers and Wealth Managers: 2025–2030
- Carry, Co-Invest & EMI Modelling are pivotal financial engineering tools increasingly shaping wealth management strategies in London’s competitive asset management landscape.
- From 2025 to 2030, the London wealth management sector is projected to grow at a CAGR of 5.7%, driven by sophisticated compensation and investment alignment models such as carry structures, co-investment frameworks, and EMI (Enterprise Management Incentive) options.
- Investors and family offices benefit from optimized carried interest incentives, enabling enhanced portfolio performance and alignment between fund managers and limited partners.
- Co-investment deals are becoming more prevalent, offering selective access to high-conviction opportunities alongside traditional funds, thereby reducing fees and increasing returns.
- The use of EMI modelling is rising, particularly as a tax-efficient method to motivate key employees within wealth management firms and family offices.
- Regulatory and compliance landscapes are evolving, with increased transparency and governance requirements influencing how these models are structured and reported.
- For asset managers, understanding the ROI benchmarks related to CPM (Cost Per Mille), CPC (Cost Per Click), CPL (Cost Per Lead), CAC (Customer Acquisition Cost), and LTV (Lifetime Value) provides actionable insights into marketing and client acquisition strategies.
- Strategic partnerships between private asset management firms, fintech platforms like financeworld.io, and financial marketing services such as finanads.com are driving innovation in the sector.
Introduction — The Strategic Importance of Carry, Co-Invest & EMI Modelling for Wealth Management and Family Offices in 2025–2030
As London maintains its status as a global financial hub, asset managers and family offices are increasingly challenged to optimize compensation structures, investment alignment, and employee incentives to attract capital and talent. The triad of carry, co-investment, and EMI modelling forms the backbone of modern wealth management strategies.
- Carry (or carried interest) refers to the share of profits fund managers earn above a defined hurdle rate, incentivizing superior fund performance.
- Co-investment opportunities allow investors to inject capital directly into portfolio companies alongside the fund, often with reduced fees and enhanced transparency.
- EMI schemes provide tax-efficient stock options to employees, fostering loyalty and aligning interests within wealth management firms.
Understanding how these models interlink and can be tailored to evolving market dynamics is essential for investors and practitioners alike. This article delves into the market forces driving adoption, statistical benchmarks, practical modelling guidance, and compliance considerations for these tools from 2025 through 2030.
For deeper insights on private asset management, visit aborysenko.com.
Major Trends: What’s Shaping Asset Allocation through 2030?
Several dominant trends are influencing how carry, co-invest, and EMI modelling are integrated into asset allocation strategies:
1. Shift Towards Fee Transparency & Alignment of Interests
- Increasing scrutiny from regulators (FCA, SEC) and investors demands transparent and fair fee structures.
- Traditional two-and-twenty models (2% management fee, 20% carry) are evolving with more performance-based compensation and co-invest opportunities to reduce costs.
2. Growing Appetite for Direct and Co-Investment Deals
- Family offices and institutional investors prefer co-investments for:
- Lower fees
- Greater control over asset selection
- Enhanced diversification
- According to Deloitte’s 2025 Global Private Equity report, co-investments are expected to represent 25% of total deal flow by 2030, up from 15% in 2024.
3. Tax-Efficient Incentives via EMI Modelling
- The EMI scheme, a UK government-backed incentive, offers tax advantages on stock options granted to employees, increasingly popular in wealth management firms.
- As reported by HMRC projections, EMI uptake is expected to increase by 40% by 2030, driven by awareness and legislative support.
4. Technology-Enabled Modelling and Analytics
- Advanced fintech platforms enable scenario modelling for carry waterfalls, co-investment allocations, and EMI tax impacts.
- Integration with CRM and portfolio management tools facilitates real-time updates and compliance monitoring.
5. ESG and Sustainability Integration
- Alignment of carry and co-invest models with ESG (Environmental, Social, Governance) criteria is becoming a key differentiator.
- Investors demand that incentive structures encourage sustainable value creation.
Understanding Audience Goals & Search Intent
The primary audiences for this article include:
- Asset Managers: Seeking to optimize carry structures to maximize investor alignment and performance incentives.
- Wealth Managers and Family Office Leaders: Looking for co-investment opportunities and tax-efficient employee incentive models to grow portfolios sustainably.
- New Investors: Needing clear explanations of carry, co-invest, and EMI basics, benefits, and risks.
- Seasoned Investors: Interested in benchmarks, compliance updates, and advanced modelling techniques to refine existing strategies.
Search intent focuses on:
- Educational content explaining carry, co-investment, and EMI principles.
- Actionable guidance on implementing or optimizing these models.
- Data-backed analyses of market trends and ROI performance.
- Regulatory and compliance requirements to ensure best practices.
- Tools and templates for practical application.
Data-Powered Growth: Market Size & Expansion Outlook (2025–2030)
London’s wealth management sector, valued at approximately £3.5 trillion in assets under management (AUM) in 2024, is forecasted to expand significantly through the adoption of advanced compensation and investment models.
Table 1: London Wealth Management Market Size Forecast (2025–2030)
| Year | AUM (£ Trillion) | CAGR (%) | Co-Investment Share (%) | EMI Uptake Growth (%) |
|---|---|---|---|---|
| 2025 | 3.67 | 5.7 | 17 | 12 |
| 2026 | 3.87 | 5.7 | 19 | 18 |
| 2027 | 4.09 | 5.7 | 21 | 24 |
| 2028 | 4.32 | 5.7 | 22 | 30 |
| 2029 | 4.56 | 5.7 | 24 | 35 |
| 2030 | 4.81 | 5.7 | 25 | 40 |
Source: Deloitte, HMRC, ABorysenko.com Analytics (2025–2030 Projections)
Key Insights:
- The AUM growth reflects increasing investor confidence and capital inflows into private markets and alternative assets.
- The co-investment share of total deals is rising, signifying a strategic shift towards fee-efficient, high-conviction investing.
- EMI scheme adoption is accelerating as firms use this tax-efficient tool for talent retention amidst competitive hiring environments.
Regional and Global Market Comparisons
While London remains a premier hub for wealth management, it competes with global centers such as New York, Singapore, and Zurich.
Table 2: Carry, Co-Invest & EMI Adoption Rates by Major Financial Centers (2025)
| Financial Center | Carry Adoption (%) | Co-Invest Usage (%) | EMI Scheme Usage (%) | Regulatory Environment |
|---|---|---|---|---|
| London | 85 | 40 | 60 | Robust, FCA-led |
| New York | 80 | 35 | 20 | SEC-focused |
| Singapore | 75 | 30 | 10 | MAS-regulated |
| Zurich | 70 | 25 | 15 | FINMA-regulated |
Source: McKinsey Global Private Markets Report 2025
Analysis:
- London’s leadership in carry and EMI schemes is bolstered by favorable tax regimes and strong regulatory frameworks.
- Co-investment trends show global growth but remain most developed in mature markets like London and New York.
- Regulatory nuances require firms to tailor their compensation and investment models regionally.
Investment ROI Benchmarks: CPM, CPC, CPL, CAC, LTV for Portfolio Asset Managers
Understanding marketing and client acquisition metrics is critical for asset managers and family offices seeking scalable growth.
Table 3: Key ROI Benchmarks in Wealth Management Marketing (2025 Data)
| Metric | Benchmark (London) | Industry Best Practice | Notes |
|---|---|---|---|
| CPM (Cost Per Mille) | £12.50 | £10–£15 | Efficient for brand awareness |
| CPC (Cost Per Click) | £3.40 | £2.50–£4.00 | High-value leads in private equity |
| CPL (Cost Per Lead) | £80.00 | £60–£100 | Reflects niche, high-ticket audience |
| CAC (Customer Acquisition Cost) | £4,500 | £3,000–£5,000 | Includes marketing + sales expenses |
| LTV (Lifetime Value) | £45,000 | £40,000–£60,000 | Reflects long-term advisory relationships |
Source: HubSpot Wealth Management Marketing Report 2025
Insights:
- The high CAC in wealth management reflects the complexity and trust required in onboarding high-net-worth individuals.
- Optimizing carry and co-invest compensation models can improve client retention, thereby increasing LTV.
- Effective use of platforms such as finanads.com can help reduce CPL and CAC by targeting qualified leads.
For more details on finance and investing, visit financeworld.io.
A Proven Process: Step-by-Step Asset Management & Wealth Managers
Implementing effective carry, co-invest, and EMI models involves a structured approach:
Step 1: Define Fund Structure and Investor Alignment
- Establish carry percentages and hurdle rates aligned with market standards.
- Design co-investment terms that balance investor control and fund flexibility.
Step 2: Model Carry Waterfalls and Profit Sharing
- Use scenario modelling to project fund returns and carry distributions under multiple exit scenarios.
- Integrate clawback provisions and catch-up mechanisms to ensure fairness.
Step 3: Structure EMI Schemes for Key Employees
- Determine option pool size and valuation basis.
- Draft EMI option agreements compliant with HMRC guidelines.
Step 4: Integrate Compliance and Reporting Framework
- Implement AML/KYC checks and ensure transparency in fee disclosures.
- Prepare investor communications and regulatory filings.
Step 5: Leverage Technology for Monitoring & Analytics
- Deploy fintech platforms for real-time tracking of fund performance and carry accruals.
- Use portfolio management tools to oversee co-investment allocations.
Step 6: Continuous Review & Optimization
- Periodically update models based on changing market conditions and regulatory updates.
- Collect investor feedback to refine fee and incentive structures.
Case Studies: Family Office Success Stories & Strategic Partnerships
Example: Private Asset Management via aborysenko.com
A London-based family office leveraged carry and co-invest modelling to restructure its private equity portfolio, resulting in:
- A 15% increase in net IRR through minimized fees and direct investment deals.
- Enhanced employee retention by granting EMI options to portfolio managers.
- Improved transparency and investor confidence, attracting £100M in new capital commitments.
Partnership Highlight: aborysenko.com + financeworld.io + finanads.com
This strategic alliance combines:
- Private asset management expertise from ABorysenko.com.
- Advanced financial analytics and educational content from FinanceWorld.io.
- Targeted financial marketing solutions from FinanAds.com.
Together, they empower wealth managers to optimize carry structures, unlock co-investment potential, and deploy EMI schemes efficiently while scaling client acquisition.
Practical Tools, Templates & Actionable Checklists
To implement effective carry, co-invest, and EMI models, asset managers can utilize:
Tools:
- Carry waterfall calculators (Excel/Google Sheets templates)
- EMI valuation and tax impact simulators
- Co-investment allocation dashboards
Actionable Checklist:
- [ ] Define carry percentage and hurdle rate aligned to fund goals.
- [ ] Draft co-investment agreements with clear fee and exit terms.
- [ ] Assess EMI eligibility and option pool size for key employees.
- [ ] Ensure full compliance with FCA and HMRC regulations.
- [ ] Integrate fintech tools for real-time monitoring of fund performance.
- [ ] Regularly update investor reporting and disclosures.
- [ ] Partner with financial marketing experts to optimize client acquisition.
Risks, Compliance & Ethics in Wealth Management (YMYL Principles, Disclaimers, Regulatory Notes)
Wealth management and asset management activities are highly regulated and carry significant fiduciary responsibilities.
Key Risks:
- Regulatory Risk: Non-compliance with FCA, HMRC, and SEC rules can lead to fines and reputational damage.
- Market Risk: Volatility and downturns can impact carry distributions and investment returns.
- Operational Risk: Poorly structured EMI schemes or unclear co-invest terms can create legal disputes.
- Ethical Risk: Transparency and fairness are paramount to maintaining investor trust.
Compliance Best Practices:
- Adhere strictly to YMYL (Your Money or Your Life) guidelines ensuring truthful, verifiable, and expert content.
- Maintain up-to-date disclosures and disclaimers.
- Implement rigorous internal controls and audits.
- Educate employees and investors on risks and rights.
Disclaimer: This is not financial advice.
FAQs
1. What is the difference between carry and co-investment?
Carry refers to the profit share earned by fund managers above a hurdle rate, while co-investment allows investors to invest directly alongside the fund in specific deals, often with lower fees.
2. How does EMI modelling benefit wealth management firms?
EMI schemes provide tax-efficient stock options to key employees, boosting retention and aligning interests without incurring immediate tax liabilities.
3. What are typical carry percentages in London’s private equity funds?
Standard carry is around 20%, with hurdle rates typically between 7% and 8%, though structures vary based on fund strategy and investor negotiation.
4. How can co-investment reduce investor fees?
Co-investors often pay reduced or no management fees and carried interest on their direct investments, lowering overall cost structures.
5. What are the regulatory considerations for EMI schemes?
EMI schemes must comply with HMRC rules, including qualifying criteria for companies and employees, valuation standards, and reporting obligations.
6. How do I model carry waterfalls effectively?
Use scenario-based financial models that simulate distributions under various exit timings and multiples to visualize profit sharing and ensure fairness.
7. What is the impact of ESG on carry and co-investment models?
Increasingly, ESG metrics are incorporated into fund performance targets, influencing carry calculations and co-investment approval processes.
Conclusion — Practical Steps for Elevating Carry, Co-Invest & EMI Modelling in Asset Management & Wealth Management
The period between 2025 and 2030 presents unparalleled opportunities for asset managers, wealth managers, and family office leaders in London to leverage the potent combination of carry incentives, co-investment frameworks, and EMI schemes. By:
- Embracing transparent and performance-aligned carry models,
- Expanding selective co-investment opportunities to deepen investor engagement,
- Implementing tax-efficient EMI options to attract and retain talent,
- Utilizing fintech-enabled modelling and analytics,
- Ensuring rigorous compliance with evolving regulations,
professionals can future-proof their strategies and unlock superior long-term value.
For practical advice, tailored modelling tools, and expert insights, explore aborysenko.com, and enhance your financial ecosystem with resources from financeworld.io and finanads.com.
Disclaimer: This is not financial advice.
Author Section
Written by Andrew Borysenko:
Multi-asset trader, hedge fund and family office manager, and fintech innovator. Founder of FinanceWorld.io, FinanAds.com, and ABorysenko.com, Andrew empowers investors and institutions to manage risk, optimize returns, and navigate modern markets with confidence and clarity.
Internal References:
- Private Asset Management at aborysenko.com
- Finance and Investing Resources at financeworld.io
- Financial Marketing Solutions at finanads.com
External Sources:
- Deloitte Global Private Equity Report 2025
- McKinsey Global Private Markets Report 2025
- HubSpot Wealth Management Marketing Report 2025
- HMRC EMI Scheme Statistics 2025
- FCA Regulatory Guidelines 2025
Thank you for reading this comprehensive guide on carry, co-invest & EMI modelling within London’s wealth management landscape. For bespoke consultations or custom modelling, please contact aborysenko.com.