Do associates at BB AM firms get a performance fee as a % of the company performance fee? ive read a lot of AM firms have a 1% fee and a performance fee of 20% of PNL. so do traders get say 10% of that 20% performance fee?
| +38 | Strategy to asset allocation | 10 | 2w |
| +28 | Q&A | Research Associate, Long-Only | (0 years in DCM/IB/consulting) | 6 | 6d |
| +15 | Working for Endowment? | 10 | 3d |
| +14 | Early career insurance AM - should I just thug it out? | 3 | 3d |
| +9 | WAMCO - Ken Leech | 2 | 3w |
| +8 | Bridgepoint Acq Kayne Anderson RE | 2 | 1w |
| +6 | Family office - analyst role test | 3 | 3w |
| +6 | MBB to Banking Career | 1 | 1w |
| +6 | Goldman Sachs Operations? | 1 | 1w |
| +4 | CPP Early Investor Program (Summer 2027) Check | 3 | 1w |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
AM firms almost never charge performance fees. Also, mentioning P&L and traders makes me think you are talking about prop desks. Can you be a bit more specific as to what you re looking for and why?
I heard hege funds charge performance fees and just assumed the same for AM firms
There can be accounts that are performance fee based, but you wouldn't see any of that. Fee goes to the firm with the PM's (or whatever depending on the structure of the firm) getting a % of the AUM they specifically manage. Associates and everyone else get a bonus based on the overall firm profits and the role they are in. So in a way it's tied to performance, but on the firm as a whole.
Edit: Or maybe the specific desk profits. It really just depends on the structure and size of the firm. Either way, you don't get a specific % of performance.
what is the AUM of an average associate at a BB firm?
I don't understand your question. AUM is assets under management and applies to how much the firm/PM manages. An Associate wouldn't be managing any assets.
I don't think you understand the difference between BB AM and S&T
then what is the difference?
ST can do trades for the firm's own account and try to make money, they can make markets in certain securities, and they can do trades for client accounts as directed by PM's. It really just depends and there are a lot of areas of trading and firms that trade for various reasons.
AM mainly manages assets for institutional clients, endowments, etc. They manage a portfolio based on a strategy that they are in. Think long/short, intrinsic value, small cap, large cap, high yield, investment grade, etc.
ST can have a P/L where they get a portion of the profits they or their desk generates while AM PM's are the only ones that get a portion of the assets they specifically manage. There really is no P/L in AM as a PM you generally get a % of your total AUM. Anyone not directly managing the assets as the PM will get a bonus, but it's not a specific % of how well the fund/desk they are on does. So as an Associate, if your desk/firm/fund returns 50% on the year, you don't get like 10% of the 50%. You will probably get a bigger bonus than you would if you returned 10%, but not 5x more.
if your an associate in AM do you make decisions like long/short and other things you mentioned above
No, the stuff mentioned above are different strategies, so you wouldn't decide what strategy the fund or account was doing. You would be working within that strategy. Most all decisions are going to be PM directed and you would just carry out the direction. Maybe they would ask (or you suggest) your opinion on something, but you ultimately have zero call on what you trade or how you position portfolios.
then what takes up so much time if your not buying and trading every minute?
Analysis, cash flows, studies on impact, performance, reporting, a lot of shit. It's not all glamorous work.
Last post here. Do some research online. Your questions are extremely basic and easy to find answers to on your own and are way too general.
Aperiam et aut est suscipit sequi reprehenderit quia. Ipsa aut et omnis ipsa et. Eius voluptate ea laborum tenetur commodi vero molestias. Est harum fugiat laborum neque corrupti vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...