Average compensation for PE analysts and associates by firm tier in London?
Hi, is there a source for average compensation of full-time analysts and associates in LMM/MM/UMM/MF private equity firms in London?
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MM PE Infra “core” - £55k base, 20%-70% bonus
Can you give indication of fund size and any idea on associate pay?
Before people lose their shit at London salaries again via the above comment –
MF PE Infra, ASO 1, £120k base / 100-150% bonus
That’s more than this year Asso 1 KKR at GBP 100k with bonus at 100% max
Believe the highest payers remain Apollo and WP
On other note - salaries are really wide in London and I know some growth shops paying their Asso less than IBD just because they can
how much is 200k p.a. in LDN net? Tax calculator says 10k / Month, is that reasonable?
Does health insurance have to be paid on top of that I'd guess?
Currently trying to think about making the move from continental Europe (MBB consultant in European local hub).
BX?
No connectivity there on associate level. I know that principals get the same level as compensation as in the USA
MF growth, around £260k all in
Carry?
No carry at associate level
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Any idea on Bridgepoint?
Bump on Bridgepoint (buyout and BDC)
My guess is around £90 - 95k on base and maybe 75 - 100pc bonus.
MF AS1 - £135k base / £61k bonus (45%)
MF AS2 - £160k base / £80k bonus (50%) / annual top-up of ~$250k in carry + stock options
Can you expand on the carry top up and stock options? Assume this is on a vesting schedule of some sort
The top-up occurs each year based on performance. So this year was $250k total, which vests over 5yrs. Next year a new allocation gets added to that, again vesting over 5yrs
UMM infra (5bn+ fund size):
AS1: £100k + 100% (could be higher, could be slightly lower)
rises in 10-15% increments per year as associate.
Principal/VP 1: £150k + 100% give or take, plus c. £1.5m worth of carry allocation vesting over a long time lol
Carry figure you give is allocation per year or per fund?
per fund, you get more allocations as you get more senior (we also have a "house carry" structure where you participate in carry from other funds too)
UMM AS1 - £125K base / £100-125k bonus expected
Rough indication of fund size?
Between 5-15B USD latest fund size
What are tax rates in london?
Pertinent for this discussing, 40% or 45% for higher tax earners. Effective tax rate of like 55-60% for those earning between 100-125k.
effective tax rate of 55-60%...please enlighten us how that is possible when the top marginal tax rate in the UK is 45%.
the blended tax rate for someone making £250k in London is ~40%. same as the equivalent in NYC.
there is also a major tax arbitrage for expats via overseas workday relief that can drop your effective tax rate by ~10% for the first 3 years working in the UK, depending on the amount you travel.
ASO 3 buy out: £300-350k all in
What’s been the progression? And how do you expect this to continue?
Won't make much sense. There have been pay revisions across the years so it'd be misleading. I don't know what an ASO1 is on at the moment sorry.
Must be H&F xD
'Senior' Associate - LMM (Fund size <£500m) - £95k base, 50% bonus, carry of £1m (DAW: ~£0.5m, so this assumes 2x return)
What’s your background before joining the firm?
Big 4 M&A (in a decent sector team) and then IB at MM US bank in London - promoted to Associate there, then to PE.
Personally, I think working in Big4 and IB helped. Learnt different skill sets from each and developed my network.
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