I have an offer from a big MM (MLP/Citadel). I have read many comp threads on this board but wanted to check what the actual realistic number is for 2023. What should I expect for all-in comp for my first year?
Background - 3 years in IB (Boutique MM)
| +53 | Looking for a Fund Manager to partner with to start a new fund. | 26 | 12h | |
| +34 | Law to Quant Pivot? | 10 | 4d | |
| +30 | How to destress at Pod HF? | 8 | 3d | |
| +23 | Starting Personal Account | 12 | 2d | |
| +19 | Hedge Fund WLB | 6 | 3d | |
| +18 | Any R course recommendations? | 14 | 23h | |
| +16 | Which Funds focus on timing the broad market rather than L/S individual equities? | 10 | 3d | |
| +16 | Track Record Expectation For PM's | 22 | 1h | |
| +15 | CRE Team at Credit Oriented Hedge Fund | 3 | 5d | |
| +15 | CRE Team At Credit Oriented Hedge Fund | 0 | 6d |
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.
Reality check:
1) whether you spent 1 year or 3 years in banking doesn’t matter. To HFs, you’re a ‘1st year investor’ regardless of your prior non-investing experience.
2) you can expect 150-200k base as junior associate / analysts at large MMs.
3) the bonus range will vary widely depending on your personal performance but also team’s performance. This will apply for every year of your MM HF career going forward with increasing variance as you become more tenured.
Thanks for the response.
I appreciate that it is entirely performance driven. And while I have no wild expectations for bonus...how much could I reasonably expect given that I would just be a "support analyst" and let's assume average performance that keeps everyone satisfied.
Thanks again
It varies depending on the year (some years are better than others for MMs) and the PM and the team performance - and I’m by no means a industry comp expert - but in my experience 100-200% of base should be a reasonable base case for a 1st year support analyst in a functional team.
thank you
You should ask your PM for guidance on what your bonus would be (as a multiple of your base) in this middle of the road scenario you sketch out. No one here can give you a better answer, and it's also a question PMs happily answer, in my experience. The most common answer I've heard is bonus = 1x base (for expectations setting coming in - not necessarily actuals).
200k - 300k all in is a good baseline - 100 - 150k base and 50 - 150 bonus is usually the ballpark.
Yeah I definitely think it’s more in the ballpark of 50-100% of base assuming the team does well.
200% of base seems high for first year or two unless base is low. Would take more like 3+ years to get to comp numbers of 500k+
For context, I got an offer at a pod shop for guaranteed ~$500k comp after 2+2 IB / UMM PE so they do give guarantees to attract talent. I didn’t end up taking but interesting datapoint for offers to someone that didn’t have public markets experience
This makes sense to me. If you’ve been making that much at MFPE then they need to attract you.
How do analyst guarantees work when PM's role isn't guaranteed? I.e. If PM gets unwound mid-year, is MLP on the hook for paying guaranteed pay to new analyst whether or not they relocate to another PM within MLP?
Worked at a pod but before analysts received guarantees.
Yup they would be no different than a PM signing a deal with a data vendor. Analyst guarantees are basically just cost centers that get reallocated now.
why didn’t you take the HF?
Et perspiciatis qui autem eum omnis assumenda earum aut. Nemo aperiam libero nostrum.
Minima rem possimus recusandae quidem dignissimos velit consequatur. Odit delectus sint est facilis harum ducimus consequuntur. Tenetur voluptas maxime facilis. Dolorum quam animi sed cupiditate corporis cum autem. Facere voluptates et eum odit neque ea. Blanditiis molestiae architecto eos aliquid iure provident. Cum nihil esse architecto laudantium sit.
Asperiores officiis voluptatem neque aut sed. Voluptatibus nulla aspernatur assumenda id. Non reprehenderit labore aliquam.
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...