2014 Salaries in Private Equity: IR/BD
Looking to do a potential lateral to do IR/BD work for an upper mm fund (think $750MM to $2B AUM).
Had a recruiter tell me someone with
Now, the egotistical and clueless 20 something year old in me wants to say I would earn ~$100k more in income over two years (if the stars align) in my current gig working the same hours (more like 10 hours a week less. So 45 in my current gig versus the 55+ I foresee in this gig) and for them to go and **** themselves. But, that's not forward thinking. As far as how I came up with the ~$100k number - it's complicated but possible in my current field. Think law of compound interest.
For some reason, I call b/s (seems low compared to my current situation, which is pretty good). So I don't want to compare apples to oranges. I'm just not desperate to leave [and will negotiate hard come potential interviews].
I'm just curious whether so many people would jump on board a stable $100k salary for 50 hours of work a week in NYC/San Fran/high col city (which is not that impressive - I'm making the money, so I can say it). While I am no special snowflake I'm not a fan of providing 'return on investment' to low ballers (anyone who's been round the block in finance knows what I'm talking about).
Any one know of salaries in these fields? I know you can't really group IR and BD together, but a break down of both would be helpful to.
NOTE: I will give away 5 SBs to the first five good comments.
All I have is ...
"Sure, you can still make it to the $150 – $200K+ range, but you won’t do it in only a few years as you might in banking or PE."MI
Of course, the trade-off is that your lifestyle is more controlled and you’re dealing with far less stress.
It's tempting to go for the high paying, high prestige job because everyone else is doing. There is an innate pressure, and I think it's a good thing to have as long as you can channel it to something positive.
I don't know the breakdown of IR and BD, but in your first year of banking, you will probably break $100k in total compensation (base, signing bonus, performance bonus). But the more important question is where you'd like to end up. And it's okay if your answer is "to make as much money as possible," but you have to think about sustainability. How many people stay in banking and PE for long term? Are you okay with the turnover rates?
In addition, the trade off between 50 hr weeks and 100 hr weeks is very significant. Even 80 hrs a week implies that, if you work 14 hrs a work day, you still have to work 10 hrs on the weekend. Is there something in your life that you like to spend a lot of time doing? Would you be okay with sacrificing that?
Take a look around WSO about threads on earning less and working less. You will be surprised as to how many people say they would take the 100k for 50 hrs a week.
This is not a bad thing to think about, and feel free to ask me any questions either on this string or through PM.
adding to brokencircle13 - you have to be okay with the hours for the rest of your life, not necessarily just for a year or two of grinding it out; there is no 9-5 in high finance, and you have to really enjoy what you do - it's not for everyone
you can definitely live on 100k in a high col city - plenty of ppl do on less (single of course) - just don't be stupid and blow all your money on alcohol, though herd mentality will dictate otherwise. all about budgeting and money mgmt
forecasting future salary is ridiculous - everyone extrapolates an exponential rise due to a good bonus year or unrealistic projections/growth rates. In reality, you have to be okay with the possibility of little to no bonus and factor that in as well.
I can shed a little light on this. Your intuitions are correct, you will make more at your current gig. The suitor is not lowballing you, PE does not pay lights out for juniors, they don't need to, and pay is very concentrated at the top.
If you are not desperate to leave, do not leave. Use your offers as leverage to negotiate for higher salary at current gig. Once you see a promotion etc., reevaluate your situation in 1 or 2 years. Why? You'll make more money short term, and can jump to associate at current gig, and maybe get a second promotion once you lateral. You'll end up maximizing your value by holding out.
Source: Currently in a similar situation, just on the other side of the coin.
Hope this helps - follow your gut.
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