2023 Platform PM payouts/packages
Been at my platform for a while now and thinking about exploring what’s out there. There’s been huge growth over the last year and also massive war for talent. Curious who’s offering the best packages these days? Are all the major platforms offering 20% no deferred comp? Or is there opportunity to get something better at the major platforms?
20% gross or net?
20% payout on Pnl generated
can you explain these terms?
If a fund is charging 2% on AUM and 20% on performance, the PM would take the entire performance fee?
What PNL/Sharpe do you need to be considered for a PM role?
Yeah, same as above question -- 2 and 20 is the standard hedge fund take (yes I know some top-tier funds officially charge higher fees, but most large investors negotiate better deals than the official rates). If the PM gets 20% of the pnl, then how is there much leftover for the management committee?
That's what goes in your pocket with no below the line costs? After paying out team/analysts and various charged through research costs? That's a really good deal and seems rare to get, unless I'm misinterpreting the terms here
I’m happy with seat and not actively searching so this is more second hand info from friends + colleagues / relayed from headhunters who are always trying to sell people on new seats but I think most terms are pretty similar. I think there are probably bigger differences on how different firms treat bonus / incentive guarantees to switch firms. Wish I could be more helpful, PM me if you want more color.
People need to check their expectations, 20% and no deferred is only at 2-3 major platforms. Most everywhere else, you're either in the teens, or 20% but with significant deferred.
And to state the obvious, the above only matters if you can consistently generate alpha. Most people can't.
20% payout on a 2 billion book with a 3% return is pretty significant. Wondering how many PMs at the 2-3 major platforms can get that ?
Citadel generated over 15bn in PnL last year. So it's a lot
20% seems high, most are at 15% Minimal deferrals becoming pretty common, especially the smaller platforms not big ok deferrals now.
Again think the key now for most people is what the overall resources and how to grow your book over time. Everyone is bid for talent but they are also still making changes every 2-3 years.
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