Comp at megafund special sits platforms

Based on the most helpful WSO content, here’s a breakdown of compensation insights for megafund special situations platforms at the senior associate, vice president, and principal levels:

1. Senior Associate Level:

   • Total average compensation for a 3rd+ year associate in private equity is approximately $277K.
   • For hedge funds, a 3rd+ year associate averages $287K.
   • Carry is typically not offered at this level in most cases, though it may vary by firm.

2. Vice President Level:

   • In private equity, vice presidents average $363K in total compensation.
   • Hedge fund vice presidents average $464K, which may reflect a more performance-driven structure.
   • Carry is more likely to be introduced at this level, though the amount and structure depend on the firm.

3. Principal Level:

   • Private equity principals average $676K in total compensation.
   • Hedge fund portfolio managers (a comparable senior role) average $1.648M, though this is highly variable and often tied to fund performance.
   • Carry is almost always included at this level, often forming a significant portion of total compensation.

Carry Considerations:
Carry is generally more common and substantial at the VP and principal levels, especially in platforms like Apollo, Oaktree, and KKR, which are known for their structured compensation packages. However, the specifics can vary widely depending on the fund's structure and performance.

If you're targeting these roles, expect compensation to align closely with these benchmarks, with potential variations based on the firm's focus (credit vs. equity) and geographic location.

Sources: Confessions of a former second year IB Analyst, Q&A - Senior Associate Ex-Megafund (REPE), Q&A: European PE professional at a Large-cap Megafund, Life at Mega Developers, Q&A: Principal at megafund