Background: I left banking for the HF world, and joined a $3.5bn multi-strategy fund in NYC. I work on the risk arb/event driven desk, with nearly the focus nearly all on risk arb right now. Our levered book is $1bn, and there is just me and my PM making trading decisions (my PM is not a partner). My PM started the risk arb book here last year, and it recently grew significantly in the past few months as the Partners really like the oppotunities and strategy. I am a post-MBA, and was previously an M&A banker for a couple of years.
Questions: what is the likely comp structure of my PM? Is it likely he gets a % of our take of the upside? I know what my general downside is this year b/c of hiring discussions, but less certain on baseline and upside possibilities. Anyone have insight on pay and pay track for risk arb? Trying to figure out what my expectations should be, particularly after this year. Also would like to know how PMs are compensated on this type of strategy.
Many thanks.
