HF Comp Out of IB - Current Figures

Does anyone have numbers on current base / bonus rates for HF analysts out of IB programs (1-2 years out of college)?

Since HF pay is less uniform than banking / PE gigs, it'd be useful to collect some data points.

Given the variability in HF pay, it would be great if you could include AUM / fund size as well as a description of the fund if possible (single vs multi manager, long vs long/short, etc) so we can get a sense of what the current figures are like across the board.

Comments (11)

Most Helpful
Oct 16, 2018 - 12:36pm
Excelling, what's your opinion? Comment below:

I am not currently on the public side, but interviewing for public side roles. I'm going to be honest, I've reached out to a lot of friends at HFs and the ranges are absurd. Did my best below:

SALARY

  • If you fully completed your 2-year IB program, 95-125k base salary is probably reasonable
  • If you did 2 years of IB then 1-2 years of PE, 125-150k base salary is possible

BONUS

  • Structure 1: You get allocated a $ amount of the portfolio and get to keep a % of that PnL
  • Structure 2: You get allocated a % of the total PnL for the entire fund
  • Structure 3: Completely discretionary per what your managers think you are worth and how the fund is doing
  • Summary: $0 to no limit on the upside, but being two years out a bonus of ~75%-125% of your salary is probably about the starting range

All of this is through informal conversations with friends and varies with geographic location, fund size, and most importantly fund performance. I hope somebody in the industry, especially with a few years of experience, will chime in to add some thoughts. Hope this helps!

  • Associate 1 in PE - LBOs
Nov 21, 2021 - 2:48pm

Does anyone know if the tiger cubs / top l/s funds follow bonus structure 1 and 2? Or would 3 be more common

Oct 17, 2018 - 5:02pm
WallStreetOasis.com, what's your opinion? Comment below:

Just a reminder that we have a Hedge Fund industry report with hundreds of data points (actually thousands now) of HF compensation...

And you don't have to pay or get WSO Premium to access it...all you have to do is contribute to the database (salary from an internship or interview insight from any interviews you had) and you get 1 week (for intern submissions) to 1 month (for all others).

Good luck! Patrick

Nov 3, 2018 - 7:53pm
Anonymous Monkey, what's your opinion? Comment below:

i would read sumzero comp report. if you worked at an elite bank (e.g., like Laz / evercore / ms M&A) then assume you get 80-95% percentile on the report or above. so first year, you should make $200k for 80th percentile and maybe 300-400k for 95th percentile.

  • Analyst 2 in PE - LBOs
Dec 11, 2021 - 12:18pm

First year Probablt in line With PE. Second uear more variable. If you're at a 10bn fund that's up 30% you'll probably make 1mm. If up 10%, maybe you'll make 400-500k…again in line with PE. So downside is PE or slight discount to PE, and upside is many many multiples, and upside goes up a lot as you become more senior. This is for the best funds, though.

Dec 11, 2021 - 12:24pm
Arroz con Pollo, what's your opinion? Comment below:

Isn't another downside they just fire you if it's a bad year or they don't think you provide value? Just from reading various forums over the years, it seems that hedge funds are a lot less stable in terms of job stability and safety, but the reward to somewhat offset that risk is you make obscene amounts of money

  • Investment Manager in HF - Other
Dec 11, 2021 - 12:57pm

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