LMM / MM PE Compensation
Starting at a PE firm in a Tier 1 city (NYC / SF with latest fund around 800 million) and total comp is 210. (50 / 50 base and bonus) Wanted some insight to see if this was in line with street. Several of my peers are at similar sized funds and in the 230-260k range so just hoping to benchmark.
I think 210 all in sounds about right for a fund of that size +/- about 20k. 250k and above for that size of fund seems too high to me, as a number of the UMM funds are at between 250-275k for their associates
any idea how guaranteed the bonus range is? Pretty high variable pay.
Generally what I’ve seen is a fixed bonus not a range, at least for 2 year associate programs, ie the offer letter has the bonus amount written.
In the HF world I’ve seen offer letters guarantee a minimum bonus, which can go higher based on fund / individual performance, it’s possible some PE funds might use this structure as well at the junior level.
Agreed
Sounds about right, but maybe average for that fund size is closer to $220-230K. Hard to say really and you can take a look at that H&S PE comp report. $250K+ is definitely in for the $1B+ territory.
210 sounds right to me.
Might be a pretty basic question but do LMM/MM offer a bump in comp for the 2nd year? Or is it market to be flat until a promotion in title?
Typically yes, but not always. Most places will bump base up by $5-10k per year.
Does your firm have a credit group? If so, how do Hours & comp compare?
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