I’ve seen it discussed here many times that the top MM seats are just as good as the top SMs ones. What does a top MM seat look like? What are its characteristics? What differentiates a top one from a mid one? Not doubting or looking to debate — I am just curious and trying to learn more
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I mean the answer is money. Part of the reason so many people have gone from SM to MM is the pods can pay a lot more. This world attracts certain personalities (one end of spectrum you can make $10-20m, the other you can make your base)
Assuming we’re talking senior analyst because PM is self explanatory (basically no ceiling on comp / book can grow very large)
- One of the big 2-3 MM
- Senior PM with big book and track
- $500-1bn+ carve-out w/ full autonomy
- 7-10% of PNL
- flexibility to run +/- 5% net
In really good years analyst pay can get very, very high. I’ve seen some analysts with big sleeves do 60-80 of PNL in very good years and get paid MSD $M even HSD $M as a sr analyst. Also run the math for a 0-1% return. This seat is attractive for the right type of person (upside of life changing pay at a really young age and downside of only making a few hundred K)
If you make 60-80M of PNL as an analyst you’ll get PM offers at MMs who will pay guarantee you 8 figures. Then once you’re a PM the upside is even more compelling…
Super helpful. May I ask one other follow-up. As someone coming from a very good SM, what skills will be needed to make this change? Obviously time horizon are different. Volumes of idea flow is different. Is there any advice you could give me?
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