Haven’t quite seen any discussion on this but why would a PM ever wanna promote their analysts to sub-PMs and later PMs (at least in the arb businesses where things are more zero-sum)? Same COI when it comes to comp: the more you pay your analysts the less you get for youself as a PM from the shared pool. Asking mainly wanting to understand how analysts can break out of this ceiling
| +21 | How to land a seat in biotech HF? | 11 | 2d | |
| +18 | Take home case study for a MM HF. How do I stand out? | 2 | 8m | |
| +18 | MLP Backing Ex-Coatue Rising Star's HF | 11 | 23h | |
| +17 | Can MM PMs hire whoever they want? | 10 | 1d | |
| +14 | Long only HF? | 4 | 2d | |
| +13 | L/S Hold Period | 5 | 3d | |
| +13 | Distressed for Control / Loan-to-own | 5 | 2d | |
| Work at a Hedge Fund and got into HBS. Should I go? | 0 | 4h | ||
| +12 | Instantly rejected from HF internships? | 5 | 23h | |
| +12 | Top HF in Distressed Credit | 2 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Some pms are greedy. Some pms are not.
A good analyst should be helping bring more $ to the pnl pool than if they didn’t exist so the PM should be doing better by having them on the team (see below for an important caveat).
Secondly, a good analyst makes my job easier - I can work a little less, go to a few less conferences, etc.
Thirdly, it’s the right thing to do. An altar who is with you a while should be like family.
Fourthly, at some asset class disciplines (converts, cap structure, merger, index), it takes longer to get a true PM seat away than it takes to get sub book or carve out in LS (most places don’t do them bc it’s the same ideas and there are far fewer pm seats), so the analyst stays on the team longer.
Fifthly, book sizes can be quite large in those areas, so pnl opportunity is big and so even if it is a zero some game, it’s not hard to pay well in a good year.
***The caveat to number one is that since there aren’t ideas to generate as much in some of these, you have to show value above replacement (VAR) - like moneyball. If I could grab someone else and they could mostly do what you do, then you’re not getting paid like you have some unique skill / value-add.
Rem corrupti numquam dolorem recusandae eaque minima tenetur qui. Est voluptatum ut harum.
Dolor sint qui sunt consequuntur rerum ratione. Aut ipsa harum officia unde et esse et. Rerum eveniet delectus dolores et nostrum. Id ut magni nulla autem. Rem recusandae asperiores minus vitae tenetur corrupti. Enim animi officia ratione amet ipsam quis.
Minima possimus quis consequuntur ea commodi repellat corporis. Ab exercitationem animi ut velit laudantium. Cumque pariatur quisquam qui qui in molestiae sint. Amet nemo aut ipsam aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...