Typical offer for PM at MMs
What would be a typical offer for a new standalone PM (not sub PM) at one of the big MMs (say Point72, Baly, Millennium, Exoduspoint)? This would be for someone with about 10 years experience, the last three years as a sub PM. Last two years PNL was about +10 Mio USD each year at a realised Sharpe of 2.5. I realise that these things are highly individual, but if someone could give me some ballpark numbers for payout, drawdown limits etc. I would really appreciate it. Would something like 15 percent payout and 5 pct drawdown limit be competitive?
15% of cut seems pretty low these days for the large platform. Even more with this proven track record. 20% looks more in the ballpark.
In terms of drawdown, is it not the same for every PM?
The offers you read in WSJ / BBG / NYT are absolutely correct, albeit for actual PMs capable of putting up $50-75m+ pnl consistently.
Source: was recently offered one lol
hm, could you elaborate pls? I cannot access BBG right now, but I think the article they posted in the last week just mentioned huge guaranteed bonuses, not necessarily payout formulae
Not sure if this is the right one, but there was recently an article about a PM in Millennium being incentivized to stay with a $100mm guarantee to prevent others poaching the PM with large offers to compensate for deferred comp.
There may be other less outlier-esque articles on BBG but for some reason this is the one that comes to mind. I believe the piece is from early June.
Interesting. Any sense on what's approximately market for a senior analyst to leave for another risk taking seat? I was speaking with a recruiter a week ago and it sounded like something in 1-3mm is potentially market, but that was me reading between the lines. I have no idea
Yeah that’s fair. I was offered mid 1s for a Senior Analyst seat but was <3 years into buy side career then. I know of others who got 2.5-3 for similar seats with a bit more seniority.
I turned that offer down for a seat with zero guarantee but way more flexibility. Best decision I’ve ever made.
Hard to say, cause at the larger shops that is more a track record for a sub-PM not head PM of a a new strategy (10mm seems a bit light). That said if they like you and giving you 300mm aum or so, 5% drawdown seems fine. 15% vs 20% is hard to say since it matters on the firm, many are stuck at 15% while giving other resources so on. A two year 3mm guarantee probably makes sense as well.
Thank you. How do guarantees typically work here? Like in your example a 3 Mio guarantee, would that typically be structured as 1.5 mio per year, which i would received even if my formulaic 15 percent payout was below this amount? I suppose this only gets paid if I do not hit the drawdown limit? Also, how would it work if they decide to fire me without me hitting the drawdown, for example because of redemptions in the fund or because they suddenly don't like my investment style any more. Would I still get the guarantee for that year ?
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