That $404,000 got me thinking...
...what IS the conceivable highest you could make as 2nd year analyst in any position on the street?
I think $404,000 is out of the question (someone correct me if I am wrong), I don't think even the undergrad kids at Blackstone make that much. But what about traders? Can they have such a knockout year that they clear 400K? I can see a 1st year pre-MBA at a PE firm clearing that much (I remember hearing the "million in 2" for KKR...), but I don't see that a bank...
I'll go. The highest I heard was a 160K bonus a cousin of a friend made in some sort of mortgage-related desk in his 2nd year made in 2006. I believe him, he wasn't known to lie.
i remember reading in some career guide that top 2nd/3rd-yr analysts can make $175-200k
Highest I heard for a second year in Sponsors at a top 5 bank with a top of the range bonus was $75,000 base plus a 150,000 bonus.
The Prince of Wall Street
http://www.princeofwallstreet.com
.
What does this mean? Do blackstone dudes straight out of UG make more than BB analyst?
I've heard they do. Although the actual person I know there won't talk about his comp (never bring up issues of money with friends).
do traders really make that much money?
Guys, 404k is pretty much a possibility. 1) In USA the pay on gross terms is lower than in several other countries. 2) On a net of tax basis those 404k in NYC are just a mere 200k or thereabouts. There are a lot of places where top analysts take home more than 200k per year in US terms, due to tax differences.
I know an analyst that quit after 1 year to join a large hedge fund. They bought out the 1st year analyst bonus at $100K, base was $200K, bonus was up to $200K. For a total of $500K total comp in one calendar year, $400K not including the buyout of the bonus.
Jesus christ. I should quit PE and go to a Hedge Fund!
Does Bstone pay competitive to that? If they're paying 500K or so for their 3rd years, 400K for 2nd years doesn't seem too ridiculous...
Funds don't just arbitrarily throw that kind of money at a 1y banking analyst (or if they do I might need to lateral lol). Any idea what might be driving that comp package? Language/Region experience? Knowledge of a particular industry/strategy? Was this for a fundamental hf?
Traditional long/short fund. Big fund, relatively established, but trying to grow and poach the best talent. That was the driver for the comp package (not the individual). That was the standard comp package for everyone in that class.
GameTheory, did this analyst quit from a BB to go work at a Top 10 Hedge Fund?
Not sure if it was a "top 10" but definitely a large one (several billion AUM).
Not sure where you're getting 500K for third years. Do you mean third year, pre-mba associate? This person quit after 1 year at a BB, so at age 23 making $500K.
By third year I meant the analysts they just recruited from investment banks etc. That is, first-year pre-MBA PE associates, who have been on the Street for 3 years. Bad choice of wording...
Edit: i am referring to blackstone, the number is based off a report dealbreaker had a while ago on pre-MBA PE associate comp numbers.
As to the original, largest bonus I know for a fresh grad hire was $500k (first year) but that was mid-market PE. It was at one one of those mid-market PE funds that hires fresh grad "analysts" who are essentially glorified cold callers. The kid sourced a deal that ended up being a homerun flip...I think they literally bought and exited in less than 12 months (gotta love the easy credit years). Needless to say he got $500k for his efforts.
so i was at a recruitment thing for lehman back in the fall and an md was talking to us and telling us a story about a kid who's working for him right now. one of the guys in his office (ie under the md) had called up the pton lax coach 2 years ago, asking if there were any kids who had not done well in recruiting but were good candidates. and there was of course a kid with shitty grades but the coach liked etc...so they took him into this office. the way the md told it, this was basically shit work, but the kid just worked really hard and made a good impression on everybody. one year later or so, the md gets a call from a gs credit derivative desk asking if they could interview the kid. he says sure. he told us that the offer had just come in a couple days ago (at that time, back in the fall), and goldman guaranteed the kid 1 million plus a % of his book. so at 23, this kid was being guaranteed a mil.
obviously, most people will think this is bullshit (and maybe it was), but i believed it since this md pretty much had no reason to lie (and he wasnt actually hiring for his office either...this was just a general firm recruitment thing and the md is in lehmans senior relationship management for basically the firms biggest clients).
Obvious bullshit. You're a complete idiot for believing that. Firms don't call their competitors and nicely ask to interview their employees. If they want to poach, they'll contact the target directly.
i mean, the kid was working as a glorified secretary, and my guess is he probably only got the job through his md putting a good word in for him anyways (relationhip mgmt does not obviously lend itself to moving into credit derivs trading). and believe it or not, oftentimes access to the best opportunities comes from impressing your boss (esp if he thinks you're capable of more than what he can have you do currently) so while it could definitely be bs, your reason for why is so half-assed as to be laughable.
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