Recently was fortunate enough to receive an offer from a $2-3B SM that I’m really excited about. However was slightly disappointed to find out that total comp is ~$275K, which is a huge haircut from UMM / MF PE. Was wondering if this was typically for funds of this size or whether I should / could negotiate? Want to do public markets but not sure that it justifies leaving $75-100K on the table
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How many YOE including PE / IB?
Wrapping up 2 years in IB, so comparing this to IB or PE associate pay
I don’t think it’s that bad then as you’re likely giving up some immediate cash for a faster ramp if you do well. MF / UMM PE scales linearly through the Associate years so no real upside opportunity for a higher baseline.
As a datapoint, PE associates (2-4 years of experience after 2 years of IB) get anywhere from $400-800 at bigger HFs for their first years so you’ll get to those levels in a couple years.
Well you haven’t done PE yet and similar to what the other guy said, think about what your comp might be 2 years down the line instead of now. If you like the PM and strategy I’d take it, I don’t think it’s very easy to land the type of seat you have in the current market.
That's reasonable for year 1 comp on the buy side. I'm gonna pay my associate (also y1 buy side) about that much on my MM team. Year 1 comp is completely irrelevant to your career earnings if you are good at the job.
Agree for MM, but plenty of SMs have a fungible layer of juniors that have no real path to increasing comp or seniority and that works because people underwrite Year 3+ and so you can get 2 good years out of people before expectations correct. Not all funds, just some. If it’s a solid rep with low turnover and former analysts have landed at credible places should be fine.
I'm more into the MM world, but I know a buddy of mine got $250k total comp at a similarly sized SM after 1.5 years in IB
that's pretty much market for 2 YOE, range is $250k-325k. they'll probably throw another $25k if fund has a decent year
Does the fund churn junior analyst model monkeys? Or is there reasonable line of sight that performers grow? It seems low - but OTOH you’ll be ramping that year and probably a cost center
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