H.I.G. VP/Principal Comp
Anyone have a sense for numbers here? Have heard below street but don’t know specifics and if it differs between funds/strategies.
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VP1 475k all-in same across PE funds (not sure if different in europe or infa)
source: currently here
~$25k bump each year for VP2/3/etc? Also what is Principal 1 if you know?
Genuinely, why would you want to go there? It should be ~$600k cash comp truthfully, staying there means minimum $100k per year underpaid which is substantial to your quality of life at that stage when you're working HIG hours. Don't mean this facetiously, truthfully trying to understand rationale behind staying there
My title is Associate (not Senior Associate, just Associate) at a UMM fund and I get paid this much.
That said, our titles are weird af European titles and I would be VP1-2 at any American fund. Avoid places like mine unless you like getting HH outreach for jobs that would require a 40% pay cut.
Used to work there. Dont know everything and might be outdated
— they had reduced to 425 but yes think back up to 475 cash
— keep in mind they not really benchmarking only to NYC UMM. It’s Miami HQ and lots of different funds. So compared to like South FL LMM (and with tax component), it’s actually above market in that sense. Just keep in mind.
— think VP and Principal carry is very low / hard to realize relative to market. ~25bps for VP. keep in mind there is SVP layer too. Principal is like 75 maybe 100 tops (for your own deals). It’s not carry friendly place where you’re swimming in DAW and it’s doubling/tripling every couple year. Theres a ton of bodies and the top couple guys take the vast majority.
Not surprised on the low carry point, HIG has already sold materials chunks of its GP so that's more of the carry pie that is gone before trickling down economics to the rest of the firm.
thanks, super helpful. To fact check on the carry piece, their mid market fund is a 5.5bn fund, so getting 25 bps would actually be 2.5m DAW at 2x / 90% deployment which seems OK?
This comp is insanely low? Less than a VP in private credit is crazy
I'm not too sure I follow why people are asking if HIG compensation is too low? Most of their funds are $1-3bn (except for the MM fund). Most funds in this range pay their VPs $400-500k in cash comp. Of course your UMM / MF sr. associate / VP is going to get paid better, its just fund economics (HIG has a lot of mouths to feed).
Carry on the otherhand is woefully low but even though the platform is huge the individual funds are small. And yes, they (senior mgmt) are cheap
Can you say more about the cheap part? Is it just about carry?
Does anyone know about coinvest economics at Senior ASO/VP level? Believe HIG has a generous coinvest program that offsets the below street cash comp
It takes a long time for it to pay off and i have heard there are buyback clauses. With PE deals being held for longer periods i would not be surprised if it takes 10-15 years of participating in the program to get a 1.0x DPI
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