Typical HF Compensation Targets for post-"2+2" IB/PE hires?

Question

Notwithstanding the fact that compensation could vary wild depending on performance and fund type...
What is considered a typical expected range or target for first year hedge fund compensation following a 2+2 stint in IB and PE? My understanding is that the elite single managers and Tiger Cubs typically offer the potential to earn more in your first year or two than what you are guided towards at the large multi-manager platforms.

theATL · Accepted Answer

I gave a range of $350-500k for top funds, those aren’t crazy numbers, these aren’t friends of friends of friends or anything like this. I gave $500k as the top of a range because it happens (but now everyone keeps anchoring to that number instead of the range), but is around the top of what you’ll see. That range though isn’t random numbers but very much based in reality.

theATL · Answer

It just varies too much, it is going to be very hard to get you a good answer, especially if you are talking about “elite” single manager shops where there are very few openings. Size of fund, strategy, etc will all play a role in comp, and of course bonus is the real number that matters.

As for base, yes you should expect at least 150-175 for a good opportunity with 2+2 experience. At MMs the base mostly tops out around there or a bit higher.

ElliotWaveSurfer · Answer

I’ve done the math off of a few anecdotal data points and $1mm if you spread out carry and assume average fund cycle, average returns, and adjust for tax differentials is on point for a MF PE VP but as someone pointed out - those jobs are rare. There’s what, 5 MF’s? How many vp’s spots in their PE divisions? It is very akin to working at a great SM. If you are at 3rd point you’ll make more than that. Both seats are very difficult to get and I don’t think holding onto that PE VP job is as easy as it seems.

BuySide Bro · Answer

Most of my peers from PE (including myself) now work at large SM or MM shops and I can tell you first hand that average comp is lower than you'd expect but the upside is substantially higher. Have multiple friends hit 7 figure payouts in at least one of the last three years. This is why people leave PE, it's not about 1st year comp.

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Typical HF Compensation Targets for post-"2+2" IB/PE hires?

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Typical HF Compensation Targets for post-"2+2" IB/PE hires?

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