Does comp vary in different groups at a Megafund?
For example, does TPG Corporate PE pay more than TPG Growth/TPG Real Estate PE?
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Based on the WSO Dataset, compensation can indeed vary across different groups within a megafund, reflecting differences in the structure, focus, and performance of each group. While the dataset does not provide specific details comparing TPG Corporate PE directly with TPG Growth or TPG Real Estate PE, it's reasonable to infer that variations in compensation exist based on general industry trends and the nature of work in each division.
For instance, Corporate PE, which typically deals with larger, more established companies, might offer different compensation structures compared to Growth or Real Estate PE, which have their own unique risk profiles and investment strategies. Growth equity, focusing on faster-growing companies, might have different compensation dynamics, especially regarding the potential for value appreciation and the risk involved. Similarly, Real Estate PE could have different compensation metrics, influenced by the real estate market's cyclical nature and the specific deal structures common in real estate investments.
Moreover, compensation in PE is often a function of the fund's performance, with significant components like carried interest being highly dependent on the success of the investments. Therefore, if one group consistently outperforms the others, it's likely that the compensation within that group could be higher due to larger bonuses or carried interest payouts.
In summary, while specific numbers for TPG's various divisions aren't provided in the context, the principle that compensation can vary significantly across different groups within a megafund holds true, influenced by the performance, focus, and risk profile of each group.
Sources: PERE comp table, Private Equity vs Megafund Credit, Why Growth Equity vs Buyout?, Q&A: GS/MS IB Analyst —> Megafund PE Associate —> HBS/GSB Business School, The Truth Behind PE Compensation
bump
One data point I have is Thoma Bravo. They pay the same in their flagship as their growth arm for associates. Not sure if that’s industry standard though, I would imagine it might not be given fund sizes.
How much do they pay?
No, pay is usually standardized at MFs across different groups. If fund sizes are smaller, headcount is also more or less proportionally smaller. Same generally applies as you get senior and carry kicks in. Partners in growth, corporate, credit, infra, real estate pull down similar numbers assuming they perform similarly relative to their respective benchmark.
Not sure why this is getting MS — this is generally true. Why tf else would partners in smaller groups stay at MFs? Why would they not go to a shop that focuses more solely on their investment strategy so that they’re in the biggest fund if the pay varies that much between groups at their current MF? Yes it’s true that new strategies at MFs are generally going to pay less because they may be bloated/not fundraising steadily initially, but gone are the days that credit partners are getting paid substantially less than LBO PE partners at a place like BX/APO/Bain. Those once-extraneous strategies have been around for decades now and are generally functioning as well or better than the traditional buyout groups. People love to fetishize buyout PE as the ultimate place to be at MFs, but there’s a decent chance the RE or special sits partner is making more than your buyout partner and probably has a better WLB, too.
Source: I work at one of the three firms mentioned
what are the merits to buyout atp
The Real Estate group at most PE firms pays less than the traditional PE groups (e.g., industrials, software, healthcare, etc.). I have a few datapoints unfortunately showing the gap is actually quite large between RE and traditional PE at some firms.
do you mind sharing these datapoints? Thank you!
I’m at a KKR / BX / APO and all investing seats pay the same, not sure if that’s the same past associate level
Congrats On BREDS!
Nope — although sometimes I’d rather be there. I know a partner there personally, and it’s actually ridiculous how good his life is. Makes more than the average partner in my group at probably near half the hours on a good week.
Can confirm that KKR is standard across all groups.
Thanks. Also, do you know up to what level this is true? VP?
TPG is same range across groups for associates
thank you. do you know about if it differs for VP+?
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