Post-MBA compensation?

So I've looked around for this a bit, but I've seen the figures vary pretty significantly on what is considered "average" or "median". WSO compensation and other reports I've seen have varied, for example the following link which shows anywhere from $170-300k depending on post-MBA title:

http://www.wallstreetoasis.com/salary/private-equity-compensation

I know the forum also has a tendency to inflate salary expectations, so I'm just trying to be realistic. Would $200k all in be a reasonable post-MBA compensation expectation for someone with prior PE experience and a top-10 MBA?

 
Best Response
keyboardcat:

Seems on the low end. $200K all-in (assume includes bonus, no carry) is closer to 2nd and 3rd year pre-mba associate level, unless you're at a very small, lower MM fund. I would assume with your background that all-in would be at least $225K, but again this depends on the fund size.

I didn't realize people work as 3rd year Associates before MBA. This compensation structure doesn't account for "Senior Associates" which are post-MBA roles, or Principals (though I'm guessing that's equivalent to VP) so I don't really understand what the role even would be following an MBA. Do you just go straight into VP/Principal? I was under the impression that these positions ran the operational aspect of the deal process under an MD, which would require more experience than what a typical Associate role affords. Am I mistaken in that?

At any rate, it sounds like $200,000 all in isn't an unreasonable compensation expectation. I'm just weighing this against the ~$200k in debt I'm expecting to take on for the MBA, and if $200k isn't unreasonable then I'd be pretty well set (assuming of course that I can get a post-MBA position in the field).

 

Some places do 3rd years aka Senior Associate (I'm one)... out of MBA usually the title is Senior Associate or VP, although I have seen places that just call them Associates as well. I haven't seen Principals straight out of MBA though. Regardless of the title, $200K is definitely a reasonable expectation, and since post-MBA positions are typically career-track, you can expect carry on top of that.

 

$200k is low if you have prior legitimate PE experience. I'd expect $250+k cash comp and then some carry. carry may or may not be meaningful, but it could easily be worth $2mm+ if you're joining when a fund is being raised. You could also get no carry...

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 
Khayembii:
CompBanker wrote:

$200k is low if you have prior legitimate PE experience. I'd expect $250+k cash comp and then some carry. carry may or may not be meaningful, but it could easily be worth $2mm+ if you're joining when a fund is being raised. You could also get no carry...

What do you mean by "legitimate PE experience"???

Private Equity can be defined pretty broadly. There are plenty of people at Mezz shops that can rightly claim they work in PE (it is even the most relevant title). But if you're trying to get a post-MBA job at a buyout shop that pays in the range I've given, it is really different if you're coming from a mezz or even fundless sponsor background.
CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

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