To those few who are lucky enough to go straight into a hedge fund out if college, what salary/ bonus combo is the typical rate for a mid to large fund?
I know it is rare for people to be recruited out of college, but there must a few people around who can speak for the numbers.
Thanks you
Generally slightly under entry-level front office sell-side roles (let's say a discount of 10-25% off base). Unless you're talking about the bigger houses with structured entry-level programmes, where you can expect BB-type pay or 10-25% higher all-in pay.
Very much so a 'depends' type question and answer.
For a recent graduate, IB will likely earn you more all in unless you really hit the jackpot...then again, you're working 20-40 hours extra a week at a bank (and those marginal hours suck big time), so I'd hope that'd be the case. However, you'll still do quite well, learn a ton more, potentially have higher upside after a few years if you're good, and do much more interesting work given you like the fund's strategy. Quant funds may be a different ball game, I'm not sure.
This is going to be very idiosyncratic but I'll say that for my first three years I was paid like a 1st year banking analyst middle bucket, 2nd year banking analyst top bucket, and 1st year PE associate low-mid MF range (not Apollo money but still MF level). This is on 50-60 hours a week, great work environment, nice perks, interesting work etc.
I would also agree that it's very idiosyncratic. Depends on how big the fund is and what kind of role you are being hired for (not all analyst roles are equal). I think Gray Fox's comp range is a reasonable guideline.
But yea, the perks can be incredible. I'm getting the sense that newer/low personnel funds (!= lower AUM but they are correlated) have the best environments but lower pay. Really depends on your boss though.
I've seen everything from 80k to 600k all-in for undergrads, higher numbers generally being at quant funds but not always.
600K? If you're talking after several years of experience, then yeah. Straight out of UG? Come on now.
Can you name a few hedge funds that are paying undergrads $600k straight out?
Riiiiight, those darn quant funds, of course.
Just waiting for the days when we can be big shots at global macro or quant funds. Let me know if you make the jump and I can ride your coattails.
Surely not $600k, but at my fund ($25bn+) starting base + comp is around $140-150k.
With bonus being very, very variable year to year. This is macro btw.
same at my fund (similar in size) though bonus is less variable.
Right out of undergrad?
Yes.
@"Gray Fox"
Lol.
I've actually seen 950k out of undergrad, though to be fair that didn't include 401k.
yes, straight out of undergrad and I don't know why you guys think that's so crazy, most of you know that comp at HFs is absurdly volatile. I'm speaking directly about people I know personally. no one's claiming that making 500k+ is commonplace or should be expected, but it absolutely happens for people who really, really know their shit coming out of HYPSW here and there, and the vast majority of it is of course from a variable bonus.
Your buddy lied to you :(
Noiven -
While what you are saying may be true, I find it hard to believe. You say
"but it absolutely happens for people who really, really know their shit coming out of HYPSW here and there"
The problem is, no one really knows their shit, no matter where they are coming from, and especially not any undergrads. For $600K I can find someone who knows much more shit than an undergrad; with a proven track record and actual work experience.
I'm not on the quant side, so I'll leave room for error on the comments I am making, but I know many people who really know their shit, they know A LOT of shit, and they are around that level of pay. But hey, maybe some funds really do make stupid payroll decisions.
I hold the same belief as well. Unless it's some weird/unique quant role where you must have an insanely specialized academic background (e.g. subconscious investment decision-making arising from chemical reactions in the brain or something) with PhD level (at least) or even higher level education, I simply can't see why would anyone pay 600K to a person straight out of school. The only thing that springs to mind is that maybe some funds make these offers to 1 or 2 people, which works as 'word of mouth' marketing and gets the hype going about the place. Admittedly, this doesn't make much sense either.
Lol you can hire me for 500k... experience and an MBA :D
just trying to answer the guy's question, no requirement that you believe me!
The fact you mentioned HYPSW undergraduates coming out knowing their shit shows how clueless you are. You don't know your shit until you're a few years in, and even then there's a lot of people who still don't.
As @BlackHat said, your friend lied.
Regardless of how much they know, the market for an undergrad isn't even remotely close to 600K anywhere for anything. Why pay the guy that much if nobody else is even close in competing to hire the kid? Unless he had some sort of insane defined incentive compensation agreement (never happens) then there's no way he gets close to that figure. My base salary isn't even near that 600K and I'm not breaking that number unless I'm getting paid a percentage of carry... and you don't give carry to a 21 year old kid. It's not like the guy is running money.
That does seem a little sensational. I've heard that the best quant funds typically only consider PhD holders for FO positions (not sure if they're called analysts?), but 600k for an UG degree sounds insane, even if you were a math olympian or something.
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