Investment Partner vs. Operating Partner Comp
So in PE funds there are obviously a ton of operating partners/senior guys on the portfolio side of things who usually come from industry or consulting. how does the pay for these operating professionals contrast with the investment professionals. I’m looking at a couple of PE -esque distressed shops where the operating partners drastically bring down the AUM per IP head if you count operating partners as investment professionals - but I’d like to know if they’re comped at all similarly to investment professionals.
Reviewing the following two compensation reports side by side should provide you all the answers:
Investment professional compensation trends in North America: 2019
Operating professional compensation trends in North America: 2019
thank you. But I took a look and from these side by side reports it seems operating partners vastly out-earn investment professionals even at the junior levels. I’m not sure if I’m reading it incorrectly but it’s saying associate/senior associates at $40bn+ PE funds average $250k comp while operating associates make $450k+ all in..
I was focusing mainly on the cash portion of things.
The number of respondents on the Operating professional report is rather low. Therefore I would use these data points more as a directional guideline.
For Operating Associates I would focus on the average figures - $179k base and $90k bonus. $450k+ base and bonus is usually the starting point for VP level. Also, many firms have the hierarchy Associate -> Senior Associate -> VP. Assume that Senior Associate compensation is between the quoted Associate and VP figures.
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