IB vs PE Pay Progression in Canada
I'd like to hear your insights on IB vs PE pay progression in Canada? The PE exits in Canada appear less abundant than in the US and an AS1 PE salary at one of the pension funds is the same as an AS1 at a B5 Bank (~250k) and you don't receive carry from any of these funds.
Outside of Onex, if you go to a LMM/MM shop it seems you'd be making way less but have a better WLB. As a VP/Director at one of these MM firms how much could one expect to make in carry ($1B-5bn AUM).
B5 pay a bit over 250k for Aso1, at least the shop I was at. Aso1 at a non-pension shop like BF, Altas, etc is gonna be more than banking. Pensions, you go to if you want a better lifestyle and investing work, not for the money per se.
Canada doesn't have PE
Onex, Altas, Brookfield, Novacap, Imperial, Birch Hill, Torquest, etc lol
Ignore title.
Recently switched to a MF from a Canadian pension and I totally regret it. At the Canadian pension pay was only a 18% discount in the grand scheme of things but I got off at 5-6pm with 0 weekend work.
Trust me from someone who made the switch and was compensation and prestige driven...the grass isn't always greener.
Thing is...I'm going to be totally honest, I don't know if my ego would allow me to ask to go back to a pension.
Just me 2 cents
Starting as an AN1 in Canada next year (ignore title), did you switch to one of the MF's in Canada or lateral down to the US? I have been driven by prestige as well and I don't have family commitments right now so I haven't even considered WLB but that is definitely a good take
I lateralled down to the US. I strongly believe I missed the long term view of things. Not even WLB but pay in general.
Once you reach Principal/Director, everybody is within the same pay scale (ie: $700k - $1m). Chasing that extra $100-$200k when you're making that amount of money genuinely doesn't change your life or affect how you feel. I am in that spot now. Instead, now I miss time spending with my wife, family, friends etc. But beyond that, it's the constant need of being on call and checking emails every 10 mins. At a pension, I would go to the ball game and have no worries. Weekend I didn't even bring my work phone with me.
One more thing. Once you factor in the pension you get from a Canadian pension (you don't have to save for retirement, you will get a pension till the day you die since most funds are on a defined benefit plan), this means that the pay is actually more or if not atleast equivalent to what you will make at a MF. Really let that sink through...
Hope this helps.
Is getting off by 6PM a norm among most pension direct investing teams? I know that on a live deal it can get comparable to banking, but that’s pretty sweet if aside from that you’re pulling ~50 hour weeks…
AS1 at the big banks is around $300. The same level at a pension you can expect $180-$220; $250 is almost unheard of. Keep in mind that your bonus will be based on group performance, total fund performance, and individual performance, so it will vary significantly.
This is true at the junior levels. You have to keep in mind that once you hit senior associate you get LTIP which is a trailing 3 years of fund performance (sort of a carry but not really) which makes up a significant amount of your comp in cash.
I left as a principal was was making >$550k. I've been in the industry for 10+ years now, and I want to reiterate to the young guys out here to remind themselves that this career is a marathon and not a sprint. If both people start at the same place and one goes to a MF and one goes to a pension, after 10 years they're both making $1m+. At that point, who really gives a fuck about the incremental prestige/pay?
Assume this is CPPIB or OMERS, since other pensions don't have the Senior Associate title and instead promote to principal after 2 years being an associate.
Then in your case, it would be fair to say you get principal with 8+ years experience?
Ya bit the likes of cppib and OTPP are just glorified allocators. Never met a legit "investor" at those jokes of a firm - they just get shown co-invest nonstop.
CPP is more of an allocator, but OTPP has a surprising amount of wholly owned portcos of actual scale
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