Hi, I’m currently associate at a T1 LO.
I like the job and the environment, however I feel like I’m really underpaid compared to pods similar roles.
When I speak with BD, the figures they mention would imply that I, at least, double my total comp if I move.
For those that know the space, would you say the move makes sense? Or is it not worth leaving for more short term money?
Thanks
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Go to pod if you want to go to a pod. I.e you think you can kill it and want to take a shot at it.
Don’t go for short-term comp. Could get bounced out by year 4
Year 4 lol
Entire ecosystem by year 4 yeah, assuming you're left of the bell curve centre in tenure at 2-3 shops.
What's the directional range on your comp today
2 YoE : 90k£ + 50% Growing base 10% p.a
Big gap if I become analyst in 3/4 years.
Not sure I’m really excited by those prospects.
Is it a reasonable expectation for a first year to have base salary of 125k£ and 100% bonus at P72 or Marshall Wace?
Or 100% too optimistic?
Do you know what's the 1st year analyst pay at a Tier 1 LO in the UK?
Assuming US T1 bro ur not gonna make analyst in London ngl, unless your performance is ridiculously good
what's worth more, something with EPS of $10 with a 10x multiple or something with EPS of $20 with a 2x multiple
if you dont get the connection, by going from LO -> MM, you are going from A to B
You could be taking view mkt is wrong to put 10x on the former or 2x on the latter. But the multiple delta is why the Y1 comp differntial exists
Not OP, but in a similar situation. Everyone points to the upside at an LO of being an analyst, but everyone seems to forget that it's nearly impossible to make analyst from associate (most analysts come from MBA).
I struggle to understand why it makes sense to stay when the odds of making analyst seem to be in-line with the odds of being successful at a pod.
I feel what OP is saying, pay sucks considerably and blowing up at a pod (only getting the base salary for a year) would still make TC in-line with what I'd make at my LO.
I feel like the 10x multiple you're giving the LO doesn't price in the near impossible promotion pathway, high chance of having to pay $200k for MBA, shrinking industry, and limited responsibilities/investment exposure as an associate at a LO
Is there a reason why it's impossible to make analyst from associate at LO firms?
This is something I struggle to understand. Why not promote an associate with 3 YOE on the buyside who actually understands the investment process of LO investing? Most MBA hires do not necessarily come from a buyside seat pre-MBA. Isn't it entirely possible that a pre-MBA LO associate knows more than a MBA candidate?
Very true. The odds/outcome are in your hands in particular your aptitude if you go to MM. Whilst at a LO the outcome is in the hands of politics and bureaucracy.
I almost went for a LO, but after asking around, the general flavor of the week at LOs seems to be internal politics. Good luck getting out from Associate role and jumping to Analyst without an MBA. Even if one makes it to associate, what after? The real money/allure of LOs is after you move higher from the analyst role, and I'd say your odds of becoming a PM at a lower tier MM is much higher than ever crossing analyst mark at most LOs. The politics of it just aren't worth it imo, you'll have to wait decades for a chance to make real money and if you switch firms the cycle starts all over.
But, if you like the peace of mind that comes with it i.e. the stability and job security then it is worth thinking about. Also note, if you have a significant other and plan on starting a family soon then MM might not be the best option as most here would agree.
PM me, associate to analyst is possible and becoming more common. Puts and takes to both paths, but if you can generate alpha there is a path in LO which scales well.
mind if I PM? interested in learning more about LOs
sure thing, PM
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