How much do average MD's, Dir, Generate in annual fees
IB
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(Senior Monkey, 97
Points)
on 10/3/11 at 10:53am
Product group such as LevFin? Trying to get an idea of rev generated per person.





In straight fees? I'd say
In straight fees? I'd say $50mm - $100mm at a bulge bracket
Solidarity wrote: In straight
In straight fees? I'd say $50mm - $100mm at a bulge bracket
a single MD in lev fin generates $100mm/yr in fees?
so if i were an MD at a BB and wanted to take my clients to go set up my own shop (hire a bunch of back-office people etc) and arrange LBO loans for a fee, i could potentially bring in $100mm/yr in fees?
Or would customers not be interested, because the loans come directly from the bank (the bank with the big balance sheet) and not the banker?
Much harder for product guys
Much harder for product guys (LevFin/Sponsors, M&A) to strike it out on their own. Those guys usually start or join buyout shops, hedge funds because they're on the execution end of the transaction. It'll depend on your network, to be honest. Some LevFin guys at my bank make it rain and run the client relationship, but this is not usually the case. I was referring to an MD in an industry group (also keep in mind if you strike it out on your own you will mostly likely NOT kill it)
LBO fees are 100% about the financing. Why would Blackstone hire some post b-school associate and a stupid first year to run the model for a portco over its crack Wharton 1st yr? That's why the best sponsors groups are at the balance sheet banks and not GS / MS