Non compete period
what is typical NC period for a new analyst at a big pod shop? Have seen some prior forums sub 6months while I’m getting quoted 12
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Based on the most helpful WSO content, non-compete periods can vary depending on the firm and role. For new analysts at big pod shops, it's not uncommon to see non-competes quoted at 12 months. However, shorter periods, such as sub-6 months, have also been observed in some cases. The enforcement and length of non-competes often depend on the firm's policies, the value of proprietary knowledge gained, and the specific terms of the agreement.
Sources: Help us determine a fair compensation structure and non-competes for a new HF, How do non-competes work when you want to quit?, Demystify the LT SM / tiger cub / "PE approach" vs. MMHF / pod shops?, Longevity of Hedge fund career: how long do people last in this industry?, The Case for Taking a Banking Attitude to Other Industries
Depends on the shop, but that is the general range, 3-12 months.
Historically its been 6-12 months, but most of the big shops are giving the higher paid/better producing analysts, as well as PMs, 2 year non-competes now.
Depends on strategy, but for equity L/S for a first time analyst 12 months is on the high end but not unusual.
You are right to be sensitive to it because when you hop around in the future your non-compete will be indexed to your prior role's NC (much harder for a new employer to jump the NC from 6 months to 2 years for example vs. from 1 year baseline it is possible). Easiest to negotiate that term or get something in exchange when you have a competing offer with a lower NC.
I'm currently in a similar situation with a 12month long non compete for a sector research role. How do you navigate recruiting if you plan on moving elsewhere, is it just a matter of just waiting for a head hunter to pitch a role for fund that's willing to wait it out?
Every fund is willing to wait out, long non compete is positive selection.
Disagree with this.. sadly more than 6 months is a problem.
3 month notice, 6 NC is the standard. Depending on the pod or if your going to a “direct” competitor that NC can be 1-2 years
6 months — lucky
12 months — standard
24 months — unlucky
0 months — California
PS: Having a non-compete in the contract doesn't mean that they will also enforce it. Smaller MMs are less likely to.
RIP i have a 2Y NC as a new grad…….
Yeah, ridiculous. Deliberately sabotaging the early careers and development of employees.
The California thing has been struck down by multiple judges who have ruled in the past 18 months that the non-enforceability of non-competes can only apply to employers fully located within CA. That rules out the vast majority of HFs. There are counsel who believe the state in which you sign the contract makes a big difference as well. Our own GC speculates if the liberal FL law goes through that Citadel & Co may start flying people to Miami to sign wet contracts to take full advantage for those deemed valuable enough.
Really? If it's as you described, that would also apply to all of big tech then? Would be a very big change, thus I'm struggling to believe it.
EDIT: Did a quick web search and I'm finding the opposite ... non-competes have become even more difficult to enforce since 2024.
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