Family Office Comp Database
Hi All,
Given the variability between Family Offices, their structures, size, strategies, and investment operations. I thought this would be an interesting thread to compare roles between one another. I figured I could set the template, and others working in a family office setting could copy and share their data:
Role: PE Associate
Years in Current Role: 1
Total Experience: 5
Office Type: Single Family Office ($800M+ Net Worth)
Desc: LMM Manufacturing/Industrial Deals, ranging anywhere from $5M add-ons to $150M platforms. Maybe do 3-5 deals per year.
Strategy: Buy/Build/Hold. Buyout Deals, all majority positions
Team Size: 3 in PE (me, CEO, CFO)
Base: $115k
Cash Bonus: $15k
Additional Comp: N/A
Hours: 40-50 hours/week
City: Tier 1 (NYC, CHI, LA)
Role: Associate
Office Type: Single Family Office ($3.5-4.5B)
Desc: LMM Business Services, Tech Services and Industrials. $10MM TEV add ons up to $300MM equity checks (~1-3 add ons a year and 0-2 platforms). Venture Capital & Growth Equity with $1-25MM checks (~5-8 investments each year).
Strategy: Buy/Build/Hold Buyout Deals and mostly majority deals. Some opportunistic investments (co-investing with other funds, buying things out of sector like stake in an a grocery store chain). Growth/VC side is small checks in a Series A-C as a foothold then growing in later rounds.
Team Size: ~10 on the PE/Growth team (around 100 totally employees)
Base: $100 > $110
Cash Bonus: $60 > $65
Additional Comp: eligible for coinvest if I want
Hours: 40-55 hours a week and almost no weekend work; lots of flexibility and rarely have firedrills
City: a not NYC big city (eg Boston, Chicago, LA, etc)
Is this a powerful political name family office?
Following
Good thread... OP, you should add total years of experience on template so we all can get a sense, I've added mine below
Role: Associate
Years in current role - 2
Total years of experience - 5
Office Type: $1bn family office Family Office ($1bn)
Desc: LMM consumer and manufacturing deals that ranges from $5 - $75M, partner with others for anything above (around 2-5 investments per year)
Strategy: buy and build strategy, majority stakes
Team Size: 5 split between 3 seniors and 2 junior/mid
Base: $110k
Cash Bonus: 10-15% - around $10-$15k
Additional Comp: na
Hours: 40-50 hours / week and barely any weekends
City: Large city but non-NYC/LA
For the respondents, have any of you come from traditional PE backgrounds? Have you had interest in working for a fund?
Role: Associate
Office Type: Single family office. Permanent capital base ($0.5bn - $1.5bn)
Description: Entertainment, Media, Tech services
Strategy: Buy/Build/Hold buyout deals. Some opportunistic investments but heavy DD on growth metrics
Team size: ~10
Base: $150
Bonus: $65-75
Additional: Carry / co-invest at VP level
House: 50- 65 hours a week. Some weekend work (~5-6 hours total)
City: Medium size city (West but not California)
These numbers seem shockingly low to me given some of the sizes at these family offices. I know my comp is an outlier but would’ve expected comp for some of these posters to be slightly less than average MM PE comp. FWIW, I lateraled from UMM PE
Role: Senior Associate
Years of Experience: 6
Office Type: Single Family Office
Strategy: PE, VC/Growth, Real Estate
Team size: 2
Base: $200
Bonus: $200
That's solid - congrats! What was your path to this role if you don't mind sharing? Do you think having just 2 people at the firm is a factor for your comp? I posted my comp above and agreed, it seems a little low compared to the overall market. Any thoughts / advice on finding a similar role as yours or lateraling?
I lateraled after finishing my associate program at a UMM fund.
The team will grow over the next year since it’s a newly established family office but yes I think being 1 of 2 investment professionals helped with comp.
When lateraling, I only recruited and interviewed for senior associate positions and told headhunters that I want close to market comp or else I’m bowing out. I interviewed for several family office roles and the majority “agreed” to market comp after speaking to the headhunter post first round.
IMO, your comp looks in line or slightly below market if you’re a first year associate. How much PE experience do you have? Did you finish your associate program and then lateral?
Super helpful, appreciate the response!
I’m first year associate and no PE experience - went straight from IB at a BB (2.5 years) coverage group. Really wanted to get out of this industry since my bachelors is in engineering related to the sector as well so super concentrated experience which I wanted to diversify a bit.
To my earlier point of no PE experience, do you think I’m at a disadvantage being in a FO after IB? A bit scared that my chances to go elsewhere won’t be much since I don’t have have any PE experience. Happy to discuss more privately as well.
If your goal is to lateral to a buyout fund, you will most likely be disadvantaged vs other candidates who are already coming from the PE side. This is mainly due to the amount of deal volume/reps. Depending on the shop, you will be exposed to A TON of companies spanning multiple industries gaining significant insights to different business models, management teams, and sectors. Most family offices are the opposite (based on my interviews) - very targeted investment criteria, long-term investment horizons, smaller teams (investment professionals, operational experts/network, and back office), and frankly just not well known (most operate in the shadows). Unless you are at an institutionalized family office (MSD, Wildcat, Soros, Willett, etc.), you probably won't see the same deal volume as a PE shop and won't have the "brand" value to be on the same playing field as other PE guys.
If you're getting reps/good deal experience at your current family office relative to the fund size you are targeting (e.g. LMM or MM), then I wouldn't worry as much as the "brand" value point may only hinder you. In terms of lateraling to another family office, I'd assume this is 100% dependent on the family office and their investment strategy since each one is so unique. Many family offices talk to each other so brand may not be as important.
What have the hours been like so far?
50-60 hours but I have a ton of autonomy and control how much DD I want to do. Way better than a traditional fund that’s for sure.
Do you mind sharing what the interview process was like? Thank you!
Similar to other off cycle processes in PE. Usually a phone screen followed by a second round. Third round will be a case study and model test followed by a superday. Family office processes tend to drag along depending on how institutionalized they are.
For the sake of stats, one of my best friends is at a pretty active FO taking 150 as a 2nd yr with a sub-100% bonus
Hey all, do any of you mind sharing what the interview process was like for the FO you are at? I'm currently chatting with one and would like to know what I should be prepared for. Thank you!
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