MD / Seniors Comp in PC
Hey all, lots of good info on comp at ASO / VP level for PC. Had some questions on how it scales for seniors
- What does MD pay look like?
- Does carry become a more meaningful part of comp?
- Is there continued progression as you become more senior?
Based on the most helpful WSO content, here's what you might find regarding MD compensation in Private Equity (PE):
MD pay can vary widely depending on the firm's size, performance, and the individual's contribution to the firm. In Investment Banking, for instance, there are MDs that make $1mm a year and MDs that make $20mm+ a year, with a median around $2.25mm a year. This can give a rough idea of the potential range for MDs in PE as well, although the structures of compensation can be different.
Carry, or carried interest, is indeed a more significant part of compensation as one climbs the ladder in PE. It represents a share of the profits generated by the fund and is typically distributed after the fund returns the invested capital plus a hurdle rate to the limited partners. As an MD, the carry portion can become a substantial part of the overall compensation package.
There is generally continued progression as one becomes more senior in PE. This progression can be in terms of higher base salaries, larger bonuses, and a greater share of carry. The progression is often tied to the individual's ability to bring in new deals, manage relationships, and contribute to the overall success of the firm.
If you're looking for more specific numbers or details, it might be beneficial to check out the latest compensation reports or threads on Wall Street Oasis that discuss MD compensation in Private Equity.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/qa-md-in-ma-and-capital-markets-with-bulge-bracket-and-boutique-experience?customgpt=1, Why work up to MD in Investment Banking?, Private Equity Pay vs. Investment Banking Salary, Is IB not as attractive anymore?, How to be a good MD
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