IB/PE vs QT/QR
Mega fund pe/ bulge bracket ib vs high tier quant firms or maybe even mid-market vs small shops All I want to know is which makes more Please do not make a 5 paragraph answer not answering it saying “It’s for different people don’t do it for the money” I’m begging you that’s all I see and hey maybe this is a little skewed since I’m pretty sure being quant pay is more performance and volatile so it maybe would pay less than even middle market ib and pe just because of the differences on how you get paid and consistency so maybe if you aren't a math genius high finance is better however different forums disagree with this but I don’t know if that’s true and supposedly quants work a lot less a week and make more money still just what I’ve heard P&L gives more potential upside but you usually will still make less than MDS or partners with normal bonuses and or carry
Based on the most helpful WSO content:
Mega Fund PE/Bulge Bracket IB: These roles generally offer high compensation, especially at senior levels. IB has a theoretically unlimited cap tied to deal generation, while PE offers potential upside through carry agreements. However, PE pay can vary significantly based on firm performance and carry structure.
High-Tier Quant Firms: Entry-level quant roles often pay higher than IB/PE at the junior level, but compensation is more performance-driven and volatile. Top-performing quant funds can outpay IB/PE, but the consistency of earnings may be less reliable.
Mid-Market IB/PE vs. Small Shops: Mid-market firms typically offer lower compensation than mega funds but still competitive. Small shops may pay less but can sometimes offer better work-life balance.
In summary, Mega Fund PE and Bulge Bracket IB tend to have more consistent high pay over time, while High-Tier Quant Firms can offer higher upside but with more volatility. Mid-market and small shops generally pay less but vary widely.
Sources: Private Equity shops with the best work/life balance, Private Equity Pay vs. Investment Banking Salary, https://www.wallstreetoasis.com/forum/investment-banking/ib-vs-quant-salaries-quality-of-life-etc?customgpt=1, Best lifestyle PE firms in terms of hours work, comp/size doesn't matter, Banking vs. The Buy-side: 10.5 considerations
Pay (especially adjusted for hours worked) is definitely better in QR / QT at the junior level. The roles also require a lot more skill to get.
For senior, there is plenty of low probability upside in both, from a payoff perspective I would not distinguish.
Yeah I heard the main drawback with trying a career in quantitative instead of traditional is that’s it’s way more technical so more talent based
not really talent based more so just more technical education
But honestly I feel like I would like the work in qt/qr more it’s just i feel I couldn’t make it in and even if I did I couldn’t preform well to even gain a lot of money from it if I ventured somewhere else
if you prefer the work chose that career instead if you can make it into pe or ib in this economy you can make it trying to be a researcher or trader
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