There is lots of private equity talk right now about "super carry," following a Financial Times story about how some big-name firms are asking for a bigger cut of investment profits.

The big picture: Carried interest, the percentage of profits taken by fund managers, has historically been 20% for private equity. But the FT reports on 30% carry structures in new funds from Altor, Bain Capital, The Carlyle Group, EQT Partners, Eurazeo and Vista Equity Partners.

What's happening: Recent PE returns have been strong, giving general partners more negotiating leverage over prospective limited partners. Kind of like right before the financial crisis.

  • But one important difference is that some of these funds also come with lower fixed management fees, or choose-your-own-structures that Bain Capital pioneered several years ago. That matters because many LPs believe that such a trade-off creates a stronger alignment of interest — whereas the 2006-2007 carry increases were cash grabs without concessions.
  • Plus, buyout fund hold periods are shrinking a bit, meaning that LPs can get have more timely performance data when making new commitments.

My thought bubble: To be clear, I typically side with limited partners when it comes to fee structures. It's their money. But "super carry" seems more worthy of a deep sigh than hyperventilation.

Go deeper: Low-risk investments are fueling more private equity repurchases

Go deeper

NYC's coronavirus positivity rate spikes to highest since June

New York Mayor Bill de Blasio. Photo: Noam Galai/Getty Images

New York City's coronavirus positivity rate has ticked up to 3.25%, its highest since June, Mayor Bill de Blasio said at a news conference on Tuesday.

Why it matters: The jump — from 1.93% on Monday — came on the first day that public elementary classrooms reopened in the city after months of closures, but guidelines state that all public schools will have to shut if the citywide seven-day positivity rate stays above 3%.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 11:30 a.m. ET: 33,423,249 — Total deaths: 1,003,008 — Total recoveries: 23,199,564Map.
  2. U.S.: Total confirmed cases as of 11:30 a.m. ET: 7,152,221 — Total deaths: 205,268 — Total recoveries: 2,794,608 — Total tests: 102,342,416Map.
  3. Health: Americans won't take Trump's word on the vaccine, Axios-Ipsos poll finds.
  4. Media: Fauci: Some of what Fox News reports about COVID-19 is "outlandish"
  5. States: Cuomo extends New York moratorium on evictions until 2021.
  6. World: More than 1 million people have now died from coronavirus — India the second country after U.S. to hit 6 million cases.
Dan Primack, author of Pro Rata
2 hours ago - Economy & Business

AppHarvest is going public

Illustration: Sarah Grillo/Axios

AppHarvest, a Morehead, Ky.-based developer of large-scale tomato greenhouses, is going public via a reverse merger with a SPAC called Novus Capital (Nasdaq: NOVSU). The company would have an initial market value of around $1 billion.

Why it's a BFD: This is about to be a "unicorn" based in one of America's poorest congressional districts. AppHarvest CEO Jonathan Webb tells Axios that the company will employ around 350 people in Morehead by year-end, and that its location allows its product to reach 75% of the continental U.S. within a one-day drive.