PE/HF Analyst Salary After IBD
I am curious to know what PE analyst salaries are. Specifically, if you have completed a 2/3 year BB IBD analyst program, what kinds of offers might I see as aspiring PE/HF analyst?
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I've seen a ton of variety (much more so than banking salaries + bonuses). Assuming that the person makes the maximum possible bonus, all in comp typically ranges from $135 - $175ish. Of course, there are outliers that will be making more or less, but if you're in this window, assume that you are being paid market (Note: This is for MIDDLE MARKET PE shops)! Carlyle, KKR, Blackstone, etc. are all likely to pay more -- but also work you more. Outside of the megafunds, PE pay is not correlated to fund size (you never know what you're going to get with funds under $1billion). Same goes for hours/week. It all depends. I'm pleased to be dropping my hours from 90/100 to a steady 55/60. I know others in a similar boat and still others going to sweatshops.
In terms of salary vs. bonus split, this also varies. My base next year is six figures with a bonus of up to 50%. I also know of people with $80k salaries and bonuses of up to 75% as well as others with bases of $80k with guaranteed bonuses of between 75% - 100%. Some of the cold-calling PE firms work on more of a commission structure, with reasonable bases ($60-100k) bonuses of 25k per sourced deal or something of that nature.
~~~~~~~~~~~ CompBanker
Compbanker - thanks for the deep insight
I had another question regarding PE shops in particular. Is it possible to try and go to a "lifestyle" shop, when going through recruiting.
I know that people's expectations of having a dramatically better lifestyle on the buyside are generally flawed, but I'll be the first to admit that I would rather not be doing 70-80hrs consistently. Ultimately, I'm asking if there are reputable (albeit MM PE) shops that may have a better reputation for work life balance. I'm not a lazy person (well okay kinda), but really do enjoy my time outside work, and have heard of some so called "lifestyle shops".
As for reference, I'm going a fairly well known boutique NY, where the analysts have gone off to mostly upper middle market PE shops, or mid sized HFs. No mega funds, but the MDs are fairly well connected it seems. An alum there had 2 offers from $3Bn+ funds in NY but chose a $1Bn fund on the WC.
Thanks for the info!
waltersobcheck,
Of course it is possible to try to go to the lifestyle places. Everywhere I interviewed at was very straightforward about the time requirements. The sweatshops told me "most people try to move from banking to PE for a change in lifestyle and our shop doesn't offer that." The one I ultimately ended up at told me they go home every day by 8pm at the latest and rarely work on the weekends.
If you're asking for a list of MM lifestyle shops, I certainly can't give one to you. I would say that the pickier you get, i.e. geography, fund size, company size, etc., the harder it will be to get a job.
~~~~~~~~~~~ CompBanker
I'd agree with Compbanker on a lot of points, but my subset of data points for compensation is a little higher.
My roommate from college interviewed at 4 or 5 shops, all of them 200-500mm in their latest funds, and all-in comp was in the range of $160-200k (this is outside of New York/Chicago/LA). I interviewed at shops 1bn+ (which I still consider middle market) in their latest fund and all in comp was usually structured at about low six figures with bonuses of upwards to 125%. And of course, my friends at larger funds make about 25-35% more than that.
I ought to add that none of my data points are from NYC and they are all from either this year or the prior year (aka a bad market).
~~~~~~~~~~~ CompBanker
is MARKEDLY higher than what is quoted here:
first year at Blackstone in 2006: $325K all in second year at KKR in 2006: ~$425K all in
take these data points with a grain of salt; but yeah, megafunds pay well; HF pay is much more variable
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Any intelligence on post-2006 megafund comp?
At least one of the top 5 is currently hovering at or below $300K for a first-year associate.
Check this out: http://blogs.wsj.com/privateequity/2009/09/03/big-buyout-firms-suffer-s…
As you can see comp at the mega funds seems to have fallen more percentage-wise than in the middle market.
Does anyone else have any recent info on mega funds?
Anyone care to talk about VC comp these days?
How about PE comp pre-IBD stint? What would an incoming analyst expect if going straight to PE out of Ugrad? MM, Megafund, any info would be appreciated.
From what I've heard, comparable or slightly above IBD.
This is correct - comparable pay, better hours.
Is it expected you do a two year stint and then go back to b-school like you do in IBD?
You probably would never expect to get an answer like this on WSO but, it just depends. I know a place I interned was 2 years at the associate level then you get the boot. Keep in mind this was a small VC shop which was somewhat surprising as my PE internship certainly seemed a lot more like once you are in you are going to be there until you felt like you needed to go to B school or until you are a partner. I imagine there is a little more of the two and out mentality at the bigger shops but this is just my assumption...maybe someone with some direct knowledge can comment.
Regards
Do the PE restructuring divisions at like BX get paid as much as you are quoting here?
What is PE restructuring? No such group exists at BX. There's PE, and restructuring, and M&A, and real estate, etc., but no such thing as "PE restructuring." Not sure if this is a typo or a misunderstanding of what groups exist as BX.
One megafund offered
100K Base 100-150% as bonus +20K for every Bn invested, +Co investment.
So other than coinvestment you can make ~350K in a good year, ~220K in a bad year.
is that pre or post ibd?
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I'm assuming its obviously post IBD, for a Pre-MBA Associate. If it was pre it would suggest a comp package of 220-350K for a kid fresh out of UG. He also wouldn't be getting a Pre-IBD Analyst offer at this time of the year.
I'm at a multi billion shop with a modest base of $90K and a very modest expected bonus (~60% of base). The selling point (or perhaps downfall) is we get to coinvest in all the deals, which can potentially return us 10x my own money or lose it all....
90+55 at a $2B+ shop? Wow. 140-ish what our first year analysts made, is this directly out of UG? If not, I'm guessing this is in an extremely lifestyle focused culture.
Co-invest isn't all that rare.
more like $7B+ shop. The firm targets approximately $200-300K all in with coinvest....just refuses to pay that in cash.
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