MMHF L/S Equity Comp Expectations

Hi all, I'm currently at a BB doing IB and actively interviewing for L/S equity roles at a few pods across some MMHFs.

I wanted to ask how does compensation typically evolve over the first 5 years in MMHFs? From what I understand, it's largely discretionary in the initial years but tends to shift toward a more formulaic structure over time.

Assuming a team structure with one PM and five analysts managing around $500M, generating ~5% returns annually, what might a typical analyst payout look like under such a setup across the years?

Appreciate any insights! Thank you

3 Comments
 

Depends on the analyst’s PnL linkage and terms you get. I was quoted 7-8% as a first time risk taker

 

Thanks for the datapoint! Could I check on:

  1. Your background and yoe prior to moving to this fund
  2. Your team size in terms of AUM/IP
 

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