I’m an associate in IB and from what i’m reading on here a switch to a HF will likely cut my base salary to $150k-$175k, which is a decent chunk below where i’m at (without it recovering in future years also).
Is that just the price to pay for joining the industry? Are there any places known for paying a high base?
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| +18 | Worth Joining a Small Hedge Fund? | 13 | 2d |
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| +5 | X | 6 | 5d |
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Based on the most helpful WSO content, hedge fund base salaries for associates typically range from $150K to $175K, which is indeed lower than investment banking associate base salaries that can go up to $160K or more at top boutiques. However, hedge fund compensation often includes a significant bonus component, which can make total compensation competitive or even higher depending on fund performance.
For hedge funds known for paying higher bases, firms like Citadel Investment Group, Oaktree Capital Management, and Arden Asset Management are highlighted as top-paying employers for first-year associates, with total compensation averaging $163K and potentially higher depending on bonuses. Keep in mind that hedge fund pay is more volatile and performance-driven, so the bonus component can vary significantly year to year.
If maintaining a high base salary is a priority, you might want to explore larger, more established funds or funds with a reputation for competitive compensation packages.
Sources: Day in the Life: Hedge Fund Associate - Investment Banking Background, 2017 Hedge Fund Report: 8 Key Takeaways, Private Equity Pay vs. Investment Banking Salary, Promoted to associate but average base salary bump, BB Associate Base Salary
bump...
can anyone pls share some higher paying HFs?
I’ve heard/interviewed at some that pay 225k. The most I’ve seen was 250k but for more senior level ppl
You don't join a HF for the base salary, period. It's a job (profession?) where you have to be OK with income volatility.
If you want to get paid more to continue being mediocre go to PE. That being said, being an above avg career analyst isn’t that hard…being a decent PM is a different story.
What a useless question to ask or care about
Your like choosing a firm based on best coffee in pantry
Also huge red flag you care so much
Christ the HF forum on this site is so toxic lmao
I work at a Baupost/Elliott/Silver Point/Third Point/Redwood type of place. My base is $300k as a “senior analyst”. We have one more non-PM title above me with a base of $500k. TC at my rung caps out at $4-5mm but basically won’t go below $1mm in flat/down years.
This seems like an awesome gig. What does it take (idiosyncratic PnL wise among your ideas + performance of fund as a whole) to get $4-5m vs $2-3m vs $1m? What does it take to get upside beyond that?
Is this a common setup among event driven/distressed funds?
This is directionally correct. I would say most individuals this level are responsible for high double digit to low triple digit pnl in an up year (we have a market neutral multi-$bn HF, but most vehicles are very long-biased). The lower end of the range is if the funds are flat/down.
It all depends on the firm and the role you are looking at. In general, PM roles at MM will be the lowest base. PM type positions at similar funds that might not be pure MM (I.e., SM with sector coverage, etc) will also be low but higher than MM. Management/leadership roles at SM and quant type places will be the highest.
For most PM positions you are looking at capping out around $250k
When I was at a HF my base was ~$550k but that was a more quant like fund and in a “leadership” type role. These (and other SM with high base) are the exception, not the rule, but also keep in mind that so many people here are obsessed with MM that almost all the info is about them.
Last thing to consider is that even at PE firms, the base for many senior positions caps out relative low (MD positions at $300-400k base max).
This is not correct. My prior PE firm had $750k base for partner (no MD title) and $1mm base for senior partner. I’ve seen the compensation statement from a partner who left to start his own shop and was trying to recruit me and dissuade me from staying. The latter part worked.
Partner is different than MD. At the mega shops (I.e., Blackstone, Apollo, etc) the base cap is much lower than you state. Senior MD and partner is different. It is a bit tricky to compare titles so I’ll give you that, so maybe partner at your firm is comparable, but usually partner comes with a different comp arrangement.
I think quant funds have a high base but lower pnl linkage, even for fairly senior but non-partner people. There tends to be a tradeoff between high base/first year package with discretionary bonus second year onward, versus low or even no base but with a high pnl cut. It's tricky because you need a base/healthcare (or savings) while you get the strategy running, and it's hard to hire anyone without a base, but the higher pnl cut is a better deal longer term.
Large SM, my base is $500k as an analyst.
I think some of this knowledge is outdated or disproportionately contributed by low level employees. I recently went through a pretty wide-ranging process and got a temp check from friends at similar shops and this would be my general consensus. FWIW base salaries are non-trivial with the insane rent inflation in major cities the past 4-5 years, especially if you're in your 20s and haven't had a big payday yet. YOE are counting buyside YOE only.
I would not expect more than $300k base, even if you're consistently generating 9 figures of PnL, but I'm pretty sure even our fresh grads make at least $150k base and most of my friends are somewhere in the 2-6 year bucket making $200-250k base salaries. Obviously, this is all based on anecdotal data, subject to individual skill level and negotiating leverage, etc.
These figures would apply for the major platforms.
The senior PMs consistently doing 9 figure PnL are partners in their firms / own a small portion of the equity and therefore make 8 figures as a baseline (not base salary, but almost like baseline expected level of comp). But correct - even the senior most folks technically have $300k base salaries.
Can provide my context here as well across a couple shops. It very quickly doesn't matter outside of silly NYC landlord rules, where sub-pms can't rent a $5k 1br apartment. I have never negotiated base and my PM salary is the same as my analyst salary from 5yr ago. Would rather negotiate for increased capital/better deferred treatment/lower noncompete.
Associate/Analyst: $150-225k
Sub-PM: $175-250k
PM: $200-350k
Most jobs are in NYC, where SWEs and Management Consultants can now afford much nicer apartments than PMs.
Pod shops offering only 200k base is just dumb in 2025. Sure, we're here for the bonus, but that's not a reason to disrespect us in a high inflation world.
Turns out some pod shops (more than 10B aum) pay only $150k base to PMs. Thats ridiculous. Which HFs pay 250-300k base to qr / senior qr / pm ? Esp for systematic LS equity.
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