My first year working at a fund when it's down so a little unsure of what to expect. We are down around 12% - not horrible but not ideal. We are a relatively small fund (~$500M) with a small team (<5 IPs). Does anyone have an idea of what a reasonable expectation is for year end - I was thinking 400-500K all in but really not sure.... I have 2Y IB + 5 YRs HF
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I’m always a bit surprised by these posts, have you been working at the same place for 5 years? If so you will have much more information than anyone else. To quote it as an all in number without any additional info isn’t how this works, every fund has their own nuances on structure of pay.
What is your base salary? That is generally the expectation unless you have other agreements (formulaic payouts, guarantees, etc). What do you make on an up year? Best case scenario I can think of would be about 30-40% of a “normal” bonus to try to keep you around (again depending on how much you get paid). If you can charge 2% your revenues are $10mm, just subtract all the costs (data, offices, etc) and then split that by seniority. Not a lot left.
I don't think OP actually works at a HF, I think they are asking the question that way to avoid being ridiculed like they should for asking a dumb question
what $500m fund with 5 IPs is paying analysts $500k in a down year LOL
Sorry but you have absolutely no clue.
OP - others have given some decent color. I’d say it comes down to them paying what it takes to keep you around. Your fund seems to have decent economics if it’s $100m/IP so I’d say $300-500k is not unreasonable but it of course depends how generous they’ve been in up years
I work at a >$10b fund and I’d be lucky to get 500k in a -12% year with 5 YOE in HF.
$2mm at high end and $500k low end from what I have seen
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I’m the guy who posted above at >$10b fund. Don’t really know why you think it’s impossible. Maybe I’m exaggerating saying I’d be lucky to get that. But no way I can see some guy with 5YOE getting paid >500k unless your firm is really generous. Based on what? If said analyst is pissed off - sure you can go to Citadel. But good luck figuring out what your next move will be in this shitty SM climate if that’s where you want to stay. I think people vastly underestimate how much leverage they have to funds. Maybe OP is different since his fund is a very small team (have to retrain etc) but in a decently sized fund with >20 ppl, it’s all a joke really. The main risk takers will probably get paid 7figs
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So down year $10bn lean fund $500k for “mid-level” analyst — can you talk about how that changes in an upside / 20%+ year?
And how is your comp structured? Do you have carry pts / own small % of GP? Or do you just get paid based on performance of your own ideas?
If you aren’t making $500k minimum after 5 years at a $10b fund then you suck at your job. Seriously
As I said above in my first post, without knowing anything about this persons comp it’s impossible to have an idea. They say $500k, is a normal year $600k or $1.5mm? Big difference. We don’t know their pay, the structure, their costs, how senior this person is etc. They are pulling in $10mm in revenues before any costs (probably more like $7.5mm at a fund like that) hard to imagine giving much to the IPs unless they have very low costs.
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