High finance comp ceiling India
Hey folks
At a crucial point in my career and deciding upon whether to go into high finance ( think IB/PE) or not. Comp is a major factor. Would really appreciate if someone can give the data regarding how much the top earning IB MDs and PE partners make in India? ( whole comp breakup)
Spoke with an ex-BB director, now retired. Net worth north of 5 million USD. And they didn't even make it to MD. PE partners make a shit ton. I know small am firm ceos earning 3-4 crore inr a year, at a KKR or BX you make significantly more.
how much is that relative to cost of living? Is it significantly more than US relative to cost of living?
Of course significantly more. Don't forget that in India if you're in "high finance" you send your kids to the best private schools in the country, nothing less. And you do this for MUCH cheaper than the US. Bankers usually live in Mumbai and send their kids to the poshest schools with multiple ivy league admits per year, get them the best educational consultants as well to make this happen. Some PE folks I know in India have even donated massively to ivy league schools (their kids got in after..).
Also, in India, you have people working for you (domestic help). Hours in India are better too (depending on where you work and how much you care). So effectively you get to spend more time with your family because the time you have at home isn't wasted cooking and cleaning. Also allows both parents to work.
Granted, homes are expensive. In a posh part of Mumbai you cannot find a decent 3 bedroom home for under a million dollars. But you make enough to be able to afford that much earlier than you would in HCOL in the US because your expenses are fewer in India. Taxes are also lower.
The downside being, of course, that you have to live in India…
Jeez man. 5th largest economy in the world, where if you're rich (not f*ck you rich, but just rich) you actually live like a king. Your kids grow up with community and values that are deeply ingrained ingredients for success (look at most major tech CEOs right now, where did they grow up?). As someone who doesn't live in India anymore but would 100% consider moving back, I miss living in a country where i knew my neighbours like they were my brothers and sisters. Don't know if you're ever been to India, but it's more than you think it is. I'd even argue that India is an opportunity that people who have moved abroad will regret missing out on later.
4th largest now
I grew up in India and outside of like colaba / cuffe parade and maybe Bandra I'd hate it. There's not a global caliber city outside of Mumbai. Also none of the upper class people have these supposed family values lmao everybody is focused on what car your drive and what brand your shoes are. The cost of living trade off, is a trade off in this case, not a free lunch
My guess is that you are not a woman.
Hey, in the same boat as you couple of summer offers from AM’s and a boutique IB, also considering staying in India or making a move to London/NYC, what made you firm on the decision to stay in India ? I am leaning towards staying here too as everyone i speak to says i would be stupid to miss out on the India growth story at its peak, and i also think going working there for a couple of years and moving back would give invaluable experience
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Bump
PE partners are generally the highest earning but IB MDs also had it well especially those covering TMT during 2021-22
Highest comp in the industry is ~ 130-150cr (~ $16-18Mn) p.a. (Head of BX Asia PE) but your typical partner at a Global MF can make between 10-40cr ($1-5Mn)
Max IB comp varies a lot but the highest I’ve personally seen was 35cr ($4mn) but that was in an exceptional year
If you’re really that curious about the comp and have nothing else to do, look into the MCA filings for the advisory company which pays the compensation for the India team
This included carry as well right?
That is huge according to India. Comparable to more than or comparable to what top it companies are paying their CEOs
Grew up in South Bombay, and I'm in touch with both IB MD's and PE Partners. MD's at BB's can make anywhere from $1M - 5M. CEO's can make a couple million more. An Avendus MD is known to have made about $7 Million last year, so there are always one off cases where non CEO Bankers can clear the $5M mark.
PE is significantly more. The BX PE Asia Head (based in Bombay) makes about $18-20M, and a select few top India partners (including the RE head) can and have made north of $9M annually. Typical Mid level - Senior Partners are clearing $6 Million. Pay in other MF's is slightly lower, but similar up until the Partner Level. What surprised me the most is that entry level comp for MF PE analysts hovers around the 1 Crore INR mark, including bonuses.
India pay tends to fall in line with US salaries at MD level banking positions, which is remarkable considering the differences in cost of living. A lot of my friends (even the ones without large family businesses) plan on returning after a couple years, and it seems like the trend of wanting to build a life in the US or UK is slowly but steadily dying down. With that being said, US experience, especially for your analyst years is highly valued in India.
What do you mean by BX PE and by MF PE analyst u mean mutual funds such as Motilal Oswal , icici ?
BX PE is Blackstone Private Equity. MF PE refers to 'Megafund' private equity firms (the largest global funds such as Blackstone, KKR, Carlyle, Apollo etc)
This is on ball
comp is all dollar denominated and so cash comp is exactly the same as the U.S. carry of course varies depending on fund performance
VPs are around 500-600k cash + carry.. Principals are around 700-800k cash and MD/Partners hover around 1-1.2m cash
global funds like GA, Warburg are outliers in pay since they get points in the global fund while regional funds (KKR, Bx, Carlyle, TPG) are all in a narrow band. Domestic funds will be lower by 20-25%.
the big change in the last couple of years is the shifting of Asia PE centre of gravity from Singapore/HK to Mumbai.. The Asia heads of Blackstone, KKR and Warburg now sit in Mumbai.. this was unimaginable 3-4 years ago.. reflects the strength of the India story and the LP push toward India
As someone who works at a MF PE in Mumbai, I am constantly debating (a) pursuing MBA and looking for roles in western markets (think London) for the long term vs (b) coming back to India and doing PE given the opportunity for next 15 years. Has anybody else struggled with this question? If yes, how did you think about it?
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