High finance comp ceiling India
Hey folks At a crucial point in my career and deciding upon whether to go into high finance ( think IB/PE) or not. Comp is a major factor. Would really appreciate if someone can give the data regarding how much the top earning IB MDs and PE partners make in India? ( whole comp breakup)
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how much is that relative to cost of living? Is it significantly more than US relative to cost of living?
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The downside being, of course, that you have to live in India…
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4th largest now
I grew up in India and outside of like colaba / cuffe parade and maybe Bandra I'd hate it. There's not a global caliber city outside of Mumbai. Also none of the upper class people have these supposed family values lmao everybody is focused on what car your drive and what brand your shoes are. The cost of living trade off, is a trade off in this case, not a free lunch
My guess is that you are not a woman.
Hey, in the same boat as you couple of summer offers from AM’s and a boutique IB, also considering staying in India or making a move to London/NYC, what made you firm on the decision to stay in India ? I am leaning towards staying here too as everyone i speak to says i would be stupid to miss out on the India growth story at its peak, and i also think going working there for a couple of years and moving back would give invaluable experience
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You can EASILY find a 3bhk under Rs. 8.3cr ($ 1mm) if you live out of sobo. Chembur is a great option in my opinion - it has great connectivity and good quality of housing. You can get a good 3bhk for 3 to 5.5cr there. Resale prices are usually lower. If you are willing to live as far as panvel (hiranandani) then it can be as low as 1.8cr ($ 220,000). With the new bridge, the connectivity is decent and it makes it a viable option.
Bump
PE partners are generally the highest earning but IB MDs also had it well especially those covering TMT during 2021-22
Highest comp in the industry is ~ 130-150cr (~ $16-18Mn) p.a. (Head of BX Asia PE) but your typical partner at a Global MF can make between 10-40cr ($1-5Mn)
Max IB comp varies a lot but the highest I’ve personally seen was 35cr ($4mn) but that was in an exceptional year
If you’re really that curious about the comp and have nothing else to do, look into the MCA filings for the advisory company which pays the compensation for the India team
This included carry as well right?
That is huge according to India. Comparable to more than or comparable to what top it companies are paying their CEOs
I don't know man, seems very unrealistic. Most, if not all, bluechip CEOs in india don't earn that compensation. I haven't, looked at the MCA database for this, but these numbers just seem too good to be true, even if they are exceptions. What's your source btw?
I’ve seen the filings and I guess they themselves are the biggest source. They are the records you declare to Indian corporate ministry. The comp can practically even go higher. KKR India ceo actually got 198 cr ( about $ 22-25 M) that year. Plus, all the sources who work in front end PE in MF in India can corraborate that those numbers are achievable in good years for the so called posts. And yes, these guys are richer here than many blue-chip CEOs and bollywood stars and even many entrepreneurs. Kedaara founder has 5 times nw of lenskart ceo and a lot of others we usually watch on shark tank ( which itself is like a brief combo of VC and GE). The people are practically the same selected group who had the potential to be high up the c-suite if not in PE( best of IITs/CAs/MBAs). Also, it’s not shocking for very senior PE people to make more than CEOs. In 2020-21, Pichai( highest blue-chip tech CEO) netted around 200M, BX head made 1B and a few of senior most BX/KKR/APO partners minted $200-500 M( about 5-8 people combined). These are the best of best and had their stars aligned to be at the right place at the right time. A thing only few of us will ever be able to match, let alone compete. Watch Kushal Lodha video on PE on YouTube for India scenes. MFs start in India around 40-80 L fixed + 50-200% bonus. So, that’s that.
Is it true that the Blackstone Asia Head earns 20M USD per year?
Grew up in South Bombay, and I'm in touch with both IB MD's and PE Partners. MD's at BB's can make anywhere from $1M - 5M. CEO's can make a couple million more. An Avendus MD is known to have made about $7 Million last year, so there are always one off cases where non CEO Bankers can clear the $5M mark.
PE is significantly more. The BX PE Asia Head (based in Bombay) makes about $18-20M, and a select few top India partners (including the RE head) can and have made north of $9M annually. Typical Mid level - Senior Partners are clearing $6 Million. Pay in other MF's is slightly lower, but similar up until the Partner Level. What surprised me the most is that entry level comp for MF PE analysts hovers around the 1 Crore INR mark, including bonuses.
India pay tends to fall in line with US salaries at MD level banking positions, which is remarkable considering the differences in cost of living. A lot of my friends (even the ones without large family businesses) plan on returning after a couple years, and it seems like the trend of wanting to build a life in the US or UK is slowly but steadily dying down. With that being said, US experience, especially for your analyst years is highly valued in India.
What do you mean by BX PE and by MF PE analyst u mean mutual funds such as Motilal Oswal , icici ?
BX PE is Blackstone Private Equity. MF PE refers to 'Megafund' private equity firms (the largest global funds such as Blackstone, KKR, Carlyle, Apollo etc)
This is on ball
comp is all dollar denominated and so cash comp is exactly the same as the U.S. carry of course varies depending on fund performance
VPs are around 500-600k cash + carry.. Principals are around 700-800k cash and MD/Partners hover around 1-1.2m cash
global funds like GA, Warburg are outliers in pay since they get points in the global fund while regional funds (KKR, Bx, Carlyle, TPG) are all in a narrow band. Domestic funds will be lower by 20-25%.
the big change in the last couple of years is the shifting of Asia PE centre of gravity from Singapore/HK to Mumbai.. The Asia heads of Blackstone, KKR and Warburg now sit in Mumbai.. this was unimaginable 3-4 years ago.. reflects the strength of the India story and the LP push toward India
$6 million so most prolly 50 crores per year? Seems logical but 18-20m seems way too much. Another head of big MF earned around 20 crores last year. He was in Blackstone earlier.
Checked with a source.
I think the figure figure 130-150 cr is correct. It was for 2021-22. It will/can be more/ less this year.
That particular year, KKR India head cleared 200 cr ( so about 20-25 M). These were/are very big titans but PE in India at higher and even starting levels pays very well. Of course majorly prefer partners earn between 10-50 cr. There was a TOI article also I guess from 2013( when industry was still still developing) and top fund managers at that time disclosed their salaries b/ w 1-6M USD (5- 30 cr). So, it might have grown I guess. But would be based on level and performance big time and carry too.
Is it true that the Blackstone Asia Head earns 20M USD per year?
As someone who works at a MF PE in Mumbai, I am constantly debating (a) pursuing MBA and looking for roles in western markets (think London) for the long term vs (b) coming back to India and doing PE given the opportunity for next 15 years. Has anybody else struggled with this question? If yes, how did you think about it?
I don’t know anyone choosing the UK/Europe over India other than Rishi Sunak and it’s going to cost him $1bn+. Given the relative growth trajectory and the demonstrable exits in the Indian market (which was the key ? mark 5-10 yrs ago) it’s a no brainer to stay in India or see if your PE firm will sponsor the mba rather than try to exit to Europe unless you have strong family ties to the region.
How on earth did you get into a MF in India without an mba from IIM?
IIT Top 3 good grades/ CA ranker+ SRCC/ Stephens/ SSCBS/ IIM A/B top ranker. All three and even combos can get you to MF. If you have solid experience in IB, even then you can apply. BX comes to IIT B campus. IIM is the most coveted route but not the only one. Lot of options.
From Nepal, but have a lot of friends in India, all over Mumbai and Delhi.
Not going to comment on salaries, that's already been touched. Lifestyle wise, If you fit into the Upper class Indian vibe, in all of its varieties, its an amazing time to be back. Not just India, but most elites of developing countries (even Nepal where we basically have no real industry) are deciding to stay home. The QOL as an upper class member of your society is just so so much better than being a faceless cog in the west, which while isn't in decline (at least the US) like many claim, will hit peak stagnation soon.
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