Comp for new secondaries fund
Hi there,
I am in talks with joining a newly formed secondaries fund that has around 300mm in AUM in a T1 city.
I pretty much have the job and we are discussing comp. I will be joining as a Principal so the firm wants me to also help redesign the comp package to ensure it is market. What would be the base and bonus we should target for the following people? Appreciate the help.
Analyst (fresh out of undergrad): x3 Senior Analyst x1 Associate x2 VP x1 Principal (me) x1 Partner x1
Ops x3
You can already tell this fund is going to be a mess if you, the #2 are posting this here
Analyst (fresh out of undergrad): x3 - $110 base
Senior Analyst x1 - $110 base
Associate x2 - $130-160 base with 50%+ bonus
VP x1 - $180- 220 base with 50%+ bonus + carry
Principal (me) x1 - $220- 300 base with 50%+ bonus + carry + equity in firm
Partner x1 - Probably no salary/bonus or very modest comp with the majority of carry pool and most/all equity in the firm
Ops x3 - varies widely, are these attorneys? fund accountants? admins? other?
Thanks :). Well I'm pretty happy to be getting the offer. Out of curiosity, what level of carry do you think is market for the VP and principal?
Re Ops, they're accountants
If I personally was joining as the second most senior member of the fund (assuming no ownership in the firm or GP commitment to the fund) I'd want at least 20-25% of the carry pool. 1% mgmt fee on $300mm is just $3mm so budget will be tight, if you think the strategy is high conviction you should push for more carry.
I'd be thinking more about this opportunity before accepting though. $300 mm is a decent fund size for LP-stakes but in GP-led deals you're always going to be a syndicate and for structured deals you're just too small to be active unless you're co-investing with a bigger group. That's already tricky, without getting into the lack of secondary investing experience on your future team.
I got an offer from an established multi billion dollar secondary fund that is often mentioned on this site. I had 4 YOE and an MBA it was an associate position and was 110k base + 50% bonus, after 2 years at the fund they would promote you to the next level which would be 150k + 100% bonus
That sounds low. Know someone making around 150k + 100% bonus at a large secondaries fund as an associate straight out of IB.
Saw a job posting for an associate role at mid-sized secondaries fund that was $130k + 75%+ bonus. Also know that associates at that fund get a small amount of carry.
Have you spoken with recruiters? Feel like they will have good insight on market comp.
Can you dm me?
Would appreciate a PM to pick your brain about the move
I have a first round at a MF for an associate level role with posted base salary of $300k. My guess is that this number is the all in, NOT the base only.
Honestly, I'm not so sure how they are paying so much if they are riding on the coattails of primaries and taking little risk.
You might want to brush up on secondaries before your interview if you think this is the case
"Honestly, I'm not so sure how they are paying so much if they are riding on the coattails of primaries and taking little risk. "
Pretty sure they f***ed up the job posting and ported over the principal job posting which they had been recruiting for five months prior (I'm looking at the same role and that is principal base salary there).
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