Moving from s&t BB to quant HF
I’m in the process of moving from a BB (around 4-6 YoE, FO) to a large systematic fund in London. The base being discussed is in the mid £100ks.
I’m trying to sense-check 4 things. First, whether that level of base is broadly in line with the market for this type of transition, or if it’s more on the conservative side.
Second, how base compensation typically progresses at large systematic platforms — does it continue to step up over time in a way that roughly mirrors the sell-side, or does base tend to stay stagnant and all upside / TC variance comes from bonus payout?
Third, what’s the typical sign-on bonus, if any, for someone with 4-6 YoE?
Last, is buying out current year bonus common for analyst / trader roles?
I know there’s a lot of variation by team and seat, but would appreciate any colour from people who’ve made a similar move or have visibility into how these funds think about comp progression.
Based on the most helpful WSO content and insights from similar transitions:
Base Compensation in the Mid £100ks:
A base in the mid-£100ks for someone with 4-6 years of experience transitioning from a BB to a large systematic fund in London is broadly in line with market expectations. However, it leans slightly conservative for top-tier funds, especially if you’re moving into a high-impact role. Some funds, particularly aggressive ones, might offer closer to £150-200k for similar profiles, depending on your specific skill set and the demand for your expertise.
Base Progression at Systematic Funds:
Unlike the sell-side, where base salaries tend to step up more predictably, systematic funds often keep base salaries relatively flat after the initial bump. The majority of compensation growth and variance comes from bonus payouts, which are tied to fund performance, team performance, and individual contributions. That said, some funds may adjust base salaries periodically, but it’s not as structured as the sell-side.
Sign-On Bonus:
Sign-on bonuses are common for transitions like yours, especially if the fund is keen to secure your talent. For someone with 4-6 years of experience, a sign-on bonus could range from £20k to £50k, depending on the fund and the competitiveness of the offer. Some funds may also offer additional incentives like relocation support or guaranteed bonuses for the first year.
Buying Out Current Year Bonus:
Yes, buying out your current year bonus is a common practice, especially for analyst/trader roles. Large systematic funds understand the importance of making candidates whole when transitioning mid-cycle. The buyout amount typically reflects your expected bonus at the BB, and it’s often structured as part of the sign-on package or a guaranteed first-year bonus.
Additional Notes:
If you’re looking for more granular insights, consider connecting with others who’ve made similar moves or exploring WSO threads on quant/systematic fund compensation.
Sources: Wanna Jump Straight to the Buy Side?, Q&A: Equity Analyst at a Sovereign Wealth/Pension Fund, Q&A: London REPE MF Associate, 2017 ER Bonuses
Can I ask what S&T desk you previously worked in?
EM Rates Trading. Good luck!
It doesn't sound too off, maybe a bit low but I'm not as up to date with salaries across the pond. Some firms underpay base, overpay bonus. Size and structure of the fund matters a lot here. More centralized funds like 2sig and squarepoint tend to pay out higher base just cause your variance on the profit per employee for an entire thousand person organization will be much lower than the variance for a smaller pod getting paid out just from the pod profit.
Increases slightly, but IME most of the time you only get a big base bump at PM position, Most of the time, it's just bonus going up as you make more seniority.
IME there's too much variance here to give a good idea. Sign on is a direct function of how much a firm wants you and how much it will cost to draw you in. The problem for a firm with a sign on is that it's guaranteed money, even if you underperform, so they need to be "guaranteed" that you'll be a sure thing for a big sign on bonus. You'd probably see lower sign on just because you're from a bank, so you have less of a track record on the buyside. I'd wager if you perform well there, another firm would offer higher sign on at a later date.
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