What would total comp be for PC at a large MF?
Here is what I have been hearing: Associate: 350-450 VP/Principal: 600-700 Director: 800-900 Managing Director: 2mm Partner: 3mm
Is this more or less correct? Seems like a hig haircut to IB at th senior levels
Based on the most helpful WSO content, your estimates for private equity compensation at large mega-funds (MFs) align reasonably well with general trends, though there are some nuances to consider:
While private equity compensation at senior levels may appear to have a "haircut" compared to investment banking, the inclusion of carry (a share of fund profits) often makes up for this difference over time, especially at the partner level.
Sources: 2017 Private Equity Report – 8 Category Highlights, Private equity comp in London?, Growth PE Comp Progression, From Private Equity Associate to VP in Private Equity, From Private Equity Associate to VP in Private Equity
Associate and VP levels are accurate in your list, but keep in mind that the hours are much, much better versus IB.
Your comp numbers at the senior levels are roughly in-line with the latest comp survey from OSP, but that list lumps together all MFs as funds $25B+. Since you're asking about "large MFs" (note there is now a huge bifurcation between MFs $25B+ and large MFs with several hundred B) these are slightly low on the cash comp level and exclude any carry... at my "large MF" principals/directors clear $1.25 in cash+equity comp plus some carry. Carry is nowhere near PE levels, but still a good chunk of comp.
My MD makes ~$2-3m cash+equity and brings in a couple hundred more in carry. Carry will get bigger the longer you stay.
Partners should be higher than that.
tl;dr this list is right on for asso/VP, slightly low on cash+equity comp for principals+, and excludes impact from carry which is a nice 6 figure bump
Got it, thanks for the clarification. Does your group only do senior debt? 200k for an MD in carry is much lower than I expected, but at the same time the cash+equity is much higher
Senior only. The way carry works at my firm is that each fund's carry is split across all of the partners first, then drops down to the seniors at that specific fund. So carry jumps exponentially when you hit partner, while you're also being paid for the performance of every fund.
I feel like these numbers are on par or better than PE at each of the equivalent levels.
Golden age of PC
Do your 1st year principals hit $1.25mm cash + equity comp? Seems very high.
350-450 seems high for Associate
Numbers are definitely high, and maybe apply for HPS / Blue Owl but very few others. Headhunter recently told me HPS VP was 650k and that was leading the market from a cash perspective. Associate is more like 300-350, senior associate 400-500, VP 550-650. On buyside hub and odyssey these are similar. Once you hit MD and partner it’s more about how much you can originate but think 1-2mm is reasonable.
Any color on Sixth Street comp?
Sixth Street's Global Opps team comp is within the range provided by OP for Associate 1.
What is typical deferred and/or carry, beyond cash comp?
Did he say director? Single shingle recruiter? What city and fund size
It appears to be largely accurate. Senior levels may make less money than IB, but they also get better lifestyles and equity upside.
How are these numbers less than ib. Ib directors don’t make more than what’s quoted here
Can anyone comment on how these numbers might translate to fund sizes in the $1-3bn range?
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