Do PE funds pay more than target bonus?
Do most PE firms pay exactly the target bonus, or is it usually more than target?
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Honestly, if they give you a target fairly often it'll come in below that target lol
Poster above is wrong. Standard is target. Unusual to get below unless really did something wrong and being fired. Strong performers and/or strong firm outcomes (great exit, etc.) pay extra.
Very dependent on PE firm... you'd be surprised by PE firms that nickel and dime individuals even if they're getting promoted... the response below is more accurate. There are always firms that are going to be cheap.
reading between the lines here... if the base + target bonus feels low to you, my advice to you is 1) not count on exceeding the target, 2) really do some soul searching about how much the extra dollars you feel you should be paid are worth. This is not to say you are wrong to want more money, and /or that the firm is not offering below market comp (they probably are).
What I mean is, think long and hard and decide what the money means to you because in my experience, the firms that are underpaying you are never going to catch up later on (despite them making promises to do so). Firms that underpay will always underpay. Now there might be other benefits that outweigh the extra cash (great WLB, higher carry %, etc.), but don't go into the job unsatisfied with the pay and expect them to make it up to you. It just won't happen and you'll be unhappy. I've learned this lesson the hard way a couple times now, and my feeling udnerpaid has impacted my work as a result (e.g. feeling like if they are paying 80%, they get 80% effort, when they will expect 100%+ and/or having a bad attitude).
Amen. Currently at a fund that underpays and it really does seem like it's just throughout the entire organization. Looking to leave ASAP.
Can confirm
You are a fixed cost center. This not a hedge fund. You will get the target at most unless killer year and everyone gets bump. Sorry, the mentality is really no value add.
may not happen in your first associate year but it happens more often as you move up
My MF has always provided higher attainment for the top quartile at each level (at least at the junior levels, which I have experienced). Not sure if this is common practice or not.
4 years in PE have received exactly target twice and above target twice. Both years above target were pretty solid years for the fund, would expect most years to receive target.
I've been at shops w/ both models - where target is meant to be average and you're supposed to beat it if you're a strong performer, and also where target is what you're supposed to get even as a strong performer and it's really hard to achieve more than that. Anecdotally from my circle of friends it sounds like the former is more common overall, but not sure if that's actually true for the industry as a whole or not.
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