HF Pay After IB Analyst Stint
This may be a stupid question because the numbers probably vary so much but I wanted to hear what people have heard. I was curious what type of total comp is "normal" for someone moving to a long/short equity fund with around $7BN+ in AUM after finishing up an IB analyst program. I would assume at least equivalent to a 1st year associate at a BB bank but I don't know anyone at that level at a HF, so just wanted to see if anyone here has any data points on this.
Ill guess 120k plus 100k bonus
Yeah I'd say "it depends" but 225k all in sounds in the range.
I appreciate you guesses, but both of you are "prospective monkeys". 100k bonus would be less than top 3rd year analyst bonus. That could be right but I would appreciate hearing from someone in the industry who may have more knowledge on the matter. Thank you.
You clearly think this is 2006-2007. Very few if any 3rd year analysts are getting 100k bonus anymore.
Bonus' when working for a HF are very variable depending on the performance of the fund on the year, it could be 0 one year and then 200k the next year. They aren't as fixed as in a bank or PE.
Top 3rd years (and I do stress TOP) certainly made 100k this past summer -- and I know my BB wasn't even the top paying bank for analysts so we were not an aberration. Back in 2007 top FIRST years made 90k.
Definitely heard of the variability but have heard that at the junior levels that's less of the case at funds large enough to bring in decent revenue on the management fee (i.e. you don't get a great bonus in a great year but don't get 0 in a bad year). But again, who knows. Most people probably just know what they got paid and since it is variable there aren't enough good data points.
from what i've seen, expect 100k-130k base, 50%-200% bonus. Huge variability in bonus, largely tied to fund performance.
IB31, please name the banks that pay 3rd year analysts 225k all in. Assuming 90k base (ie street base), that would be 135k bonus. Definitely not realistic.
You're right. 225k is more than a top third year would make. I just was referring to bonus. 90k is street base now and ~100k was top third year which is $190k total.
i have posted on this in the past. pay is going to be highly variable but probably lower then you would think. I work at a large fund and the only analyst I really discussed pay with said she took a pay cut on year one at our fund vs what she made the prior year as an analyst at a BB bank. But she was not a particularly good performer so she might be on the low-end. I tend to think that big-name funds low-ball analysts because they know that the name on the resume is worth alot.
For many of the big/more institutional hedge funds that ran their processes very early this year (ie, Eton Park, Maverick, SAC, etc), "guaranteed" comp for 2012 starts has been pretty damn good. Base of 100-150 and bonus of up to 250 (at Eton, which has an all-in of 400). Generally speaking, the range was from 250-400, with the majority in high 200s, low 300s. At smaller funds, it's going to be extremely variable.
Regardless, I don't get why it matters all that much. Even if it's 200 all-in, you're going to be living very well and most of the people I know going into HFs are in it for the long-term. Your earning potential 10 years out is a hell of a lot more important than what you're making your first year or two. Junior focus should be on learning and building relationships, not on the paycheck.
What is this relationships you speak of and does it require power tools to build?
Exhibit 1: Steve Cohen and SAC Capital
Just to be clear, what is the exact role you're talking about within the HF - an analyst, IP?
Also, can you elaborate on what you meant by "running their processes"? As in, what is the process of their recruitment?
A good college friend is a 2Y at Maverick right now, all in comp is not anywhere close to $400K for a first year. Where are you getting your info from on the other funds?
Yea seriously 400k for a 1st year? When Paulson made 300% in 2007-2008 he paid 25 year olds that, otherwise you guys are seriously seriously overblowing compensation here.
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