In a down year like 2022 for the tiger cubs, what are analysts and MD/Partners typically paid? If one analyst or MD did really well (eg short seller analyst) but the firm is down 20-30%, how should comp work (if not based on percent of PNL)?
Would think $1mm for analysts and $1-5mm for more senior team members but curious what you have heard
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Lol seeing PE assocs ask questions about HF comp is one of the more niche luxuries of using this forum
1mm for Analyst? Haha you’re dreaming.
The sense of entitlement is just astonishing.
Just an IB / PE thing. You get paid a lot for running processes with no real pulse on the outcome of what you’re doing. You can be oblivious to how good or bad the investment is doing and still get 400-500k as an assoc. Unfortunately doesn’t happen in the HF world when your fund loses half its AUM in 6 months..
Imagine a world when analysts would get $1-$5m in total comp after being down 30-50%
yea...at TGM / Lone Pine, maybe - but def not at your average HF
I mean the question was "Tiger cubs", so OP is asking about a handful of 5-10 funds
Not even at Tiger Global and Lone Pine this year
Lol imagine being an analyst at Tiger Global and getting paid $1M on a -51% year.
at its peak, tiger ran $90B+, don't know now but assume $60B. At a blended mgmt fee of 1.25% (conservative?), that's $750mm in mgmt fees. Assuming expenses are 50% (aggressive?), that's $375mm to split. yea, chase and scott and partners are going to take the bulk of that, but don't you think they'll throw at least $1mm each to their 5-10 new analysts that were probably making $500k+ as a second year at apollo/bx? write it off as marketing costs to increase their attractiveness to their future talent pipeline. doesn't seem that wild to me
As others have said, your view on this is very very off. On a down year like this (for the funds you mentioned), you are hoping you aren’t fired as an analyst. If the fund didn’t have the lockups, internal capital, and private side (also related to lockups), the fund would be dead and you’d get whatever contractual agreements you have (if there is enough cash). I don’t think you are understanding how bad -51% is, any other fund and the money is gone.
At a SM, there are floors on comp for senior members, but that floor is for slightly down to 0 years. It is nowhere near $5mm (I am senior at a SM and have a floor and have seen other contracts and offers). At a HF, even a SM, your comp is heavily tilted toward performance (through bonus and equity) so all of those fees are dead. A senior person at this point is scrambling to figure out the economics of next year and whether they’ll stay open.
How about a more nuanced situation:
Fund down LSD
Analyst contributed HSD alpha on far-sub-pro-rata allocation of book
2 evergreen competing offers for 2x the base, 2x the cut, 2x+ capital and clear path to progression
Analyst wants to stay in current role but finds it hard to justify if there’s a donut as treatment in good up years doesn’t inspire confidence
Is it worth the analyst asking for something or so poorly received he should just go
the classic netting problem. in vast majority of cases you're not getting anything, unfortunately. it also gets super blurry if the portfolio authority isnt clearly defined esp if the analyst doesnt have discretion on the positions, which is usually the case. so its hard to say the analyst and the analyst alone was up HSD, as opposed to he simply contributed to some winning positions as part of a team.
Authority clear here, I get vetoed on sizing here or there, but for the most part noone opens my models or could tell you what my names do, except the largest ones. If the firm was/is up overall, there is a specific % of specific PnL/alpha that I’d be calculated on, but yes terms around netting allow for basically full discretion.
Also I wouldn’t say it’s the most classic case of netting like a pod team, because there is a management fee, mandate is net long so it’s actually a pretty good year in terms of performance, just not fees
I understand netting, but I was just wondering if at a SM, given there’s mgmt fee, it’s worth even asking? I’d think it’s at least fair to ask that next year the cut bumps a bit closer to market or allocation closer to pro-rata, or a pull forward bonus with clawback or something. If that will be seen as unrealistic and entitled and burn bridges perhaps it is best to take an alternative offer. Luckily looks like it may solve itself anyway.
“Would think $1MM for analyst”
lmao you delusional fuck, I really hope this is a troll
This post is so 2020 lol
in this thread: hedge fund analysts saying the numbers are naive and fucking stupid, PE clowns justifying junior analysts getting 3mm pay days when the funds are literally fighting for survival.
fwiw every single PE assoc which asks how much they would make at a HF isn't cut out to work at a HF. People that succeed in this industry don't ask how much they could possibly make to justify leaving their mind-numbing PE gigs - they just fucking leave and make it work.
That's utterly impossible, as some folks said here. Keep in mind tho if you hear an analyst at these shops saying they made 1mm+ at a year like this, they're either lying or including deferred comp from the past bubble years.
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