do you need a track to get a book at an MM?
to get a track at an MM, how much is a prior track (P&L, carve, etc.) required? have been seeing in the news number of PM seats given to SM analysts/partners who have not run risk. also see alot of MM analysts with carves stay at the analyst level without getting a PM seat elsewhere
Is this based on prestige/pedigree? does citadel/MLP prefer a 2+2 with large SM to a C/M analyst with carve and history given the background?
Another day, another intern asking the same questions.
1. No. MMs prefer to hire specialists with market neutral experience who have a track record of making $ in the risk model. Plain and simple. There are good analysts at SMs MMs LOs that have been hired by MMs. You're just seeing an article about a Coatue kid and felt the need to make a WSO post about it.
2. "also see alot of MM analysts with carves stay at the analyst level without getting a PM seat elsewhere". Some analysts with carveouts have better NET economics than PMs. 10-15% payout with no netting on huge GMV is ideal for the control freak types who need to be in every model. People stay in those seats - there's no need to leave unless you're so insecure that you need MLP to let you let you name your pod. A PM that gets 18-20% has to pay those under him as well, which dilutes his payout. A PM also has to deal with netting. Deals vary pod by pod. There are people with the analyst title that make more than some PMs...there was an "analyst" at Citadel that made $15m 2-3 years ago. Titles mean nothing. There are analysts running more than some PMs.
3. How much experience is required to get a legit PM deal? Depends firm by firm. To go from senior analyst to PM, that likely comes with a 9-figure cumul. PnL track record. Maybe less. But it's not like the second you hit $100m you become a PM - like I said, some choose to stay in the carve for longer, maybe the PM gets bought out and you take over, many circumstances.
4. The SM folks getting offers from MMs aren't getting the same deals as the mega MM PM buyout offers ($50-100m+ guarantees) you read about in BBG. They are getting smaller buyouts. I will say, most of the time (at least among the ones I've come across), the SM people getting PM offers are great analysts and have done pretty well in the pods.
5. It has close to nothing to do with prestige/pedigree. It's about your mastery of coverage universe, ability to eventually generate 9 figure PnL, manage billions of dollars of gross, and run a large team.
So I just got off the phone not too long ago with a head hunter who was looking for a Nat Gas trader. He was representing Millennium and BAM. I knew this already, but he confirmed typically these PODs are looking for PnL at least ~20mm+ per year. I told him I'm only 7 figures and that I'm not even close, and he said there are PODs out there willing to accept that, and I could also be helping out the bigger books or something.
Cupiditate perferendis omnis nostrum recusandae at magnam officiis. Sapiente assumenda laboriosam unde possimus cupiditate est fugit. Quo doloremque rerum nobis et odio porro. Ratione harum quisquam rerum vel qui voluptas. Est exercitationem blanditiis nisi nesciunt modi velit suscipit ut.
Quidem porro repellendus voluptatem adipisci quo. Eveniet neque beatae sed dolor cum beatae. Provident non ea illum sunt rerum odio et et.
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...