How can MF PE partners afford families (NYC)?
After viewing other threads, it seems there's no point in aspiring to be an IBD MD or HF PM in NYC, as you'll still be poor given the living costs. Therefore I wondering how MF PE partners stack up in comparison, and if they are able to make ends meet and put food on the table?
Let's say you are a 50 year old partner at KKR making $3-5m a year in salary + bonus, with NYC private school costs/childcare/mortgages/vacations/taxes it seems like you're only just about able to break even?
Not sure how sustainable this is to live off that little salary whilst you have to wait for (likely 5+ years) your carry check to hit (and this is assuming it even will).
All in all, it just seems like quite a gamble to live this way with such volatile earnings, and in my opinion, it isn't a viable way to build wealth.
What do you guys think? Can Apollo MDs even afford a BMW in NYC?
What the fuck are you saying, how delusional do you have to be to think that a $3-5m salary (not even including carry) is breakeven (even accounting for kids)
Srsly bruh
If you include carry it’s a lot more than 3-5M so that’s how they afford it. VPs already get 3-5M per fundraising cycle and directors can count on 15-20M per cycle
Bait
This post shows an incredible amount of financial ignorance… Tf you think it takes to not be poor in NYC? $10 MM a year? How did you even calculate the break even point here? All those costs you listed would MAYBE add up to $1 MM, depending on the mortgages. Most partners are not buying $30 MM penthouses.
I think at 4-4.5m per year you can basically live a god tier life - Hamptons mansion for 4-5 weeks, 100 ft+ yacht for 2-3 weeks, duplex penthouse, fulltime Maid, wife that doesn't work and spends 150-200k per year on shopping, private school for 2 kids, 2-3x Michelin meals with wine pairing every week, opulent vacations (chalets in courchevel etc)
but I unironically believe at 1-1.5m/yr with a family you're compromising on a lot, particularly with the sacrifices we've made in these Jobs.
that’s $2-3m after tax…yes u can maybe afford all of that but you’ll keep 0 of it and then u don’t get ahead / end up w/ a $10-20m NW when ur 65 instead of $50-100m
The lifestyle creep is real and while ur right, $4-5m pre tax is enough to just get by with that lifestyle, u really need to be like $6-7m+ to A. Sustain the lifestyle and B. Save / reinvest net so ur not banging ur head on table when 65
You are describing the poor rich man
What's your view around the ideal savings % at that income level? 30 or higher %? Or lower ?
You don’t need $50-100 at that point bud you are close to dead, statistically you are entering your last 15 years. You will be trying to take a dump and get it up at that stage (hopefully not at the same time) money will not be the problem.
Good opportunity to cut $100-200k per year in run rate costs
Just be thankful you’re in finance. You can avoid going to the payday lender. My associates dad is the head of M&A at a recognizable top 10 law firm and the guy can’t even make it paycheck to paycheck. He’s like 55 too. I see why it’s said lawyers never retire. They simply are not able to afford to. (Sarcastic)
Man you make a great point. Its easy to get carried away in the finance world that you sometimes lose perspective of the less fortunate. It must be tough slaving away as lawyer whilst earning slightly less than the pennies in IBD while working the same hours.
Tbh though I'm glad we have these selfless heroes in society willing to work for prestige and honour rather than money otherwise the world wouldn't be able to function!
He was telling us that while we were eating the Tuesday bagels and I was like… man don’t worry my dad makes more than your MD.
Can’t believe people are still taking this bait for the third time lmao
Clearly a troll post
LOL that people think this is real
Okay intern - who in the fuck do you think are the rich people in NY living in these 15mm homes and Hamptons homes. They are top-level financiers at the MFs and HFs as well as founders. Everyone on this site just justifies their absolute mediocrity through confirmation bias. MF partners at KKR are not clearing 3-5mm all in. That’s mostly cash base and bonus. Well performing partners at the top MFPE and HF shops are clearing 20mm+. Jesus Christ, for a site that is full of finance professionals, the mediocre thinking is so concerning. “Why aspire to be an IB MD or HF PM?” What in the fuck are you talking about lol Jesus if you have an inkling of ambition these days, you can become unfathomably wealthy because the competition is a fucking joke
Hhggf
Jeheheeu
Tbh. TBH
the *average / run of the mill* MF partner across all MF firms is not puling in more than 5mm a year...
Ur in for a very rude comp awakening lol
Bro wtf on god my
Parents raised me on 40k yearly
Income in nyc, stop spending
Money on unnecessary things
Is anyone else shocked how many people are actually replying to the OP as if he was being serious?
Sigh.
Trolling around here is not even fun anymore.
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