hey guys, what would be the expected pay for a hedge fund that has only recently started up (1 year old)......would the base be very low (40 grand) with a very high bonus potential?....ofcourse the fund managers are still in the process of raising funds and thus that is why the starting pay is so low
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your question has absolutely no input that would help to answer this question.
is it a 10 bn fund or a 10 mn fund? be happy to get paid at all if they are not even making money yet.....
Assume 100-150mm fund. Any thoughts?
Its not really a question of age, its a question of AUM as awp stated. But since most funds don't start with 10bn...
If you are junior level you will basically be paid shit, but if you have some sway you can put some money in and get equity. Of course unless its in writing you may never get a bonus or dividend on your equity. Theres been more than a few threads on junior ppl getting screwed by the partner(s). I've also seen this first hand.
Basically make sure the person in charge is a decent human being. Although it seems most hedge fund founders are not... maybe the org structure just attracts those types of people.
my old boss (125mm aum) started in 09 offered me like 40k. every million i raised he would give me roughly 80k. (like that would ever happen).
You better believe I would try like hell to raise some money.
I am hoping there is some sort of bonus if I can bring some LP money in but I never addressed the situation because it does seem unlikely.
$80k seems high for just $1mm. Maybe he just assumed you won't be able to do it so he threw out an arbitrary number.
At any rate, I might be able to get access to some institutional funds through a contact of mine that could lead to serious dollars in our next fund so I would be curious to see what people have to say about how much you feel someone should be compensated if they brought in $5mm or $10mm into a PE fund that would likely be between $80mm and $160mm?
As for the OP, the pay will likely be low and I wouldn't get too excited about the bonus. It isn't likely to be substantial (maybe 10%-100%) of your base, but who knows. Usually at the more junior levels your base is typically the majority of your pay.
Regards
You havent said what your job would be..."junior person" can mean alot of different things. I also would be leery of any fund that hires recent college graduates and then asks them to go raise money for the fund. That's a bit strange and usually capital raising in done in a pretty organized way such that having a 22 year old running around begging for cash could be counter-productive...ie its not great for the firm's rep.
lets say recent college grad with no experience ... what could that person be hired to do and what would they get paid in whatever position you think they could get?
Comp: Pre-MBA Associate at a start up PE fund targeting 500MM, 60k, no guaranteed bonus, small bit of carry.
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