2022/23 Associate Compensation (All)

Other thread was focused on 1st Yrs, was earlier on in 2022 and felt a bit unspecific. Odyssey Report is out as well but presumably a lot of blending here across lower COL cities, etc and so am interested in seeing individual data points.

Please list in this format (feel free to exclude any lines you feel uncomfortable divulging) -

Size - MF/UMM/MM/LMM/Pension(SWE)/Growth/VC
Vertical - Generalist/Tech/Energy(Infra)/FIG/Consumer(Retail)/Industrials/RE
Deal Type - Buyout/Credit/SS(Opportunistic)/Secondaries
City - T1/T2/T3 
All-In Cash Comp (incl. Carry separately if you have it) - $x (y bps carry)
Level - AS1/AS2/AS3/SrAS1/SrAS2
MBA Promote Req? - Y/N
% Certainty - Confirmed/Guidance/LTM Data Point

I will start it off -

Size - MF
Deal Type - Buyout
City - T1
All-In Cash Comp (incl. Carry separately if you have it) - $350k
Level - AS1
MBA Promote Req? - N
% Certainty - LTM Data Point

 

Size: LMM

Vertical: HC

Strategy: Buyout/Roll-Up

City: T3

All-in Cash Comp: 90+10, 5% carry in one deal

Level - AS1 (early A2A)

MBA Promote req: N

% Certainty: 100%

 

Size - MF
Deal Type - Buyout
City - NYC
All-In Cash Comp - $140k base with $160k target bonus (w/ "material upside" per HR) + co-invest with leverage
Level - AS0 (just started)
MBA Promote Req? - N but "encouraged" by certain Partners
% Certainty - 100% on $300k minimum all-in comp, but expecting closer to $350k

 

Basically when I got my offer the HR person told me target comp is $300k and then insinuated it's usually higher but they didn't want to put that in writing. Folks on the desk confirmed I should expect closer to $350k. 

Ignore my title, I just started the gig after 2 years in banking. 

Also worth saying that we get paid a stub in December / January and then a full-year bonus the following year, hence me characterizing as AS0. I think that's the case with most PE funds so personally am careful when people say $350k all-in comp first year because I imagine that's really the LTM figure 1.5 years in. 

 

Very nice. Super curious on what culture is like at places that allow individual deal co-invest as opposed to fund... do you find that type of structure to actually be incentive-aligning at your workplace?

Specifically:

1. Does anyone @ IC ever ask "who's co-investing, show of hands" and have it be perceived as a negative if there isn't much interest?

2. Post-investment, do you find that deals w/ large co-invest interest take money off the table quicker than deals that do not? Re: re-financing in y2-3 to take out sponsor equity, special dividends, etc on cap table side and/or larger cost cuts & more consolidation on operating side. AKA stuff that returns initial capital quicker to de-risk, and/or stuff that inflates IRR in shortened-window but may cut down on overall MOIC

 
Most Helpful

At the end of the day, the carry is where all the real money is at. Don't get me wrong, co-invest is still something I appreciate a lot and it does help a bit with incentive alignment but it doesn't justify slaving away on deals for partners who don't really respect you or your time.

1. No. To be fair our ICs are typically contained to the deal team so you'd just be asking 1-2 associates and I could imagine that conversation could get kinda awkward. I think all VPs and above are required to co-invest in all deals.

2. I don't think so. I'd say co-invest interest is typically high. Many associates just invest in every deal because they figure it's better not to try betting on individual companies and you get better diversification on your portfolio. Can't speak to co-invest level of VP+. Our firm probably does a dividend recap every year or two (not that common). We are always trying to find ways to improve our IRR but I think that is typically in the context of the broader portfolio in general rather than a few companies with higher co-invest. 

 

Size - MF

Deal Type - Buyout

City - London 

All-In Cash Comp ( Carry separate) -£700k base+bonus

Level - VP

MBA Promote Req? - N

% Certainty - 90% it will be this number or higher

 

Is the £700k FX-adjusted? i.e. is comp fixed in USD to the US-equivalent and then paid out in whatever the GBP equivalent is at the time? 

 

do you have any insight into if MF REPE pays the same as MF corp PE? Current senior in college who's trying to get as much info as possible on what field I should go into.  Thank you!

 

Good. Hours are still up there... 55-65? The important thing for me is flexibility. I'm not required to be in the office at any given time unless there is someone who needs me there, or a meeting, or something similar. But if I want to dip out early one day and I've gotten all my shit done? I just roll out, and they're generally respective of my time. Due to recruiting season (and a number of deals that I'm on which have been sitting at 98% now for weeks), I can't say the same about my time flexibility now, but overall they seem to actually encourage ASO+ to have a life. Analysts I can't speak for LOL

 

Size - MF
Deal Type - Credit
City - T2
All-In Cash Comp (incl. Carry separately if you have it) - $290k + $35k in mandatory 401k contribution + levered coinvest allocation (not needle-moving)
Level - AS1
MBA Promote Req? - N
% Certainty - 95%, with informal upside to wage inflation

 

Size - UMM
Vertical - Real Estate
Deal Type - Across The Spectrum
City - T1
All-In Cash Comp ($350K: $150K Base + $200K Bonus) | Received ~$1.5MM Worth Of Long-Term Carry With Year-End Promotion to SNAS1
Level - AS1
MBA Promote Req? - N
% Certainty - Confirmed

I need to get out of Dev.  Think the equivalent comp at my shop is in the 225-250 range. 350k is new VP money for us

How much YOE?

 

Interesting trend I noticed was only 1 of all the responses said their firm required an MBA for promote.

Don't break yourself on the way to making yourself
 

Agree it's interesting. Though I'm curious what the actual promote rates are for ASOs.

 
[Comment removed by mod team]
 

Thanks - that's a helpful data point. Have you received any guidance on FY 2023?

 
[Comment removed by mod team]
 

Are you able to negotiate comp as an associate 1 at MF, or is it standardised? Also, do all funds give signing bonuses, or is that rare?

 

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