Comp at $180M new LO Fund
Employee #3, 3 YOE, what should I expect for base + bonus?
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Employee #3, 3 YOE, what should I expect for base + bonus?
Filling up the extra space with these words.
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Career Resources
Based on the most helpful WSO content, your compensation at a $180M new long-only (LO) fund as Employee #3 with 3 years of experience (YOE) will likely depend on your role and the fund's structure. However, here are some general insights:
Base Salary: For someone with 3 YOE, a base salary in the range of $90k to $150k is reasonable, depending on your specific responsibilities and the fund's budget.
Bonus: Bonuses at smaller funds can vary significantly. If you are heavily involved in the investment process, you should aim for a bonus that brings your total compensation to around $200k-$400k, as smaller funds often offer a higher percentage of PnL sharing due to their leaner teams and higher risk/reward dynamics.
PnL Sharing: Since you are one of the first employees, you should negotiate for a cut of the PnL. Smaller funds often provide this to incentivize key employees and align interests.
Growth Potential: Being at a smaller fund, you may have opportunities for rapid growth and potentially higher rewards as the fund scales.
If you’re not already discussing PnL sharing or a performance-based bonus structure, it’s worth bringing up during negotiations.
Sources: Millionaire by 30, base/bonus 1st year analyst at HF, https://www.wallstreetoasis.com/forum/investment-banking/jp-morgan-private-bank-compensation-ladder-lifestyle?customgpt=1, What is your compensation in Real Estate Finance?, 2017 Commercial/Corporate Banking Bonuses
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