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Onex/ONCAP/Altus aside, when (at what level) does PE comp surpass IB comp?

 
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The short answer is not before Partner but what happens at the partner level is highly variable based on what fund you're referring to, how well the fund has done and will do, what the carry structure is, and finally how much compensation is re-invested vs cash.

A partner who is forced to re-invest 20% of his total comp into a fund that has a life of 5-7 years loses the opportunity cost of capital and also bears high risk of poor or negative returns.  At the pension level, the group head of private assets probably pulls 2x an average MD but significant amounts in LTIP and also the path to that is much more poorly defined than an MD.  Perhaps a better comparison would be a coverage group head of IB and that would pay maybe slightly less than a PE pension head but would be potentially less LTIP heavy.

 

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