London - PE Salaries
I was wondering what the average comp for analyst/associate is for London currently? Has it increased at all since 2020/2021?
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Career Resources
Target Associate 1 pay at large cap MFs is apparently around 250k pounds (125 base+100%+ bonus) across all of their investment strategies. Source is based on what I read in a MF REPE Q&A session on wso. Would love some formatting to this. maybe:
Title:
Group (buyout, growth, private debt, real estate, infra, etc.):
Firm (if many coworkers it's possible to remain anon, maybe firm type if not):
Base:
Target Bonus:
Very curious on Analyst comp (base and bonus) for large cap funds in London. There is so little data available it's frustrating! BX A1 base is 80k and KKR is 65k I believe. Unsure on bonus.
It’s because so little people actually secure a seat straight out of undergrad. Large Cap you are still looking at 2-4 people if that per year depending on the climate. From what I know expect anywhere from 60-80k. Don’t expect to earn more than IB however at all shops.
What would you say bonus % range is, given that Associates get 100%+? I've seen CPP and OTPP A1 get 130k all in, so if pensions pay this much the large cap pe funds should be aligned?
£5m all in as Ass1, but you barely make at the end of the month given inflation growing at 10^15%. Thanks Brexiters, next Zimbabwe’s coming
Expect GBP:USD parity by end of this summer.
You must be confused with USD/EUR. No way gbp/usd goes to parity this summer.
Just extrapolate this chart.
Tbh I don’t see it going to parity this summer. It has gone down 7.5% In the last 3 months. We have approx other 3 months to the end of summer, I don’t see how it could do down a further 20% until the end of summer (approx 3 more months). Also considering that the dollar rally is somehow slowing down. Only scenario I can think of would be Russia nuking europe, which I don’t think will happen.
Parity is inevitable, it is the long-term trend.
Well one thing is parity and other parity this summer, which is what you first said and what I disagreed with.
But moreover, I don’t think that parity is inevitable. I don’t think that the long term trend of 100 years ago matters given that at that time, there was the gold standard. For most of the period after the introduction of fiat (which is the only relevant/comparable period), the pair has been fluctuating around 1.5, with ups and downs, but quite flattish. The trend changed after the brexit referendum, with the pair shifting down to the ~1.3 area, and started to go further down in the last months due to inflation/potential recession. It it those two idiosyncratic factors that are driving the pair now, not an unavoidable, 100 year old, long term trend. That being said, the pair could go to parity for sure (close to 0% chances it goes to parity this summer), but if it does, it will be because of those two factors, i. Brexit further deteriorating the british economy and ii. Uncontrolled economy leading to a recession/stagflation. That could very much drive the pair to parity, but not a long term trend only supported by a line in a chart and with no fundamental explanation. This also means that it could go to parity driven by those factors but go back to gbp dominance in the mid term if those drivers change. This could happen under many scenarios, be it UK doing so so but US going to a deep recession, or UK finding its way post-brexit and having a robust economy, or whatever. It could also further accelerate gbp deterioration if the opposite happened. What I want to illustrate with this is that it’s current macro factors, which can change in the mid term and change the trend, affecting the pair, and not a long term trend.
During my REPE interviews, most Analyst salaries were advertised at 50-60k plus bonus (which I can only assume is like 50-100%). These roles were An1 and still required the 1-3 years experience. Could not tell you above that entry position
How recent was this, in 2022 or pre-pandemic raises? Also what type of funds (MF, SWF/ pension, insurance/ life co., sector focused, etc.)?
2022, REPE funds so RE focused only. They all had some sort of capital advisory and debt arm to them as well, but still CRE focused. M3 Capital Partners and LRC Capital Partners were two I feel comfortable naming.
2021 Associate Offer
125+125 pounds + 25bps carry on fund size +/- $500mm-ish
That sounds extremely high for the fund size, likely close to / on par with MFs - congrats! Did you get a sense where other alternatives would have ended when you went through the process?
That was the only process I went through, sorry. I had 1y of exp. from an American PE at the time so might have been why it was high, not sure.
Insanely high for this fund size (50-100k above market) even excl. carry! 250k would be top quartile for large caps / MFs even.
I'm a bit confused, why do you include carry in your Y1 comp when it takes 5-7years to vest? You may have left before you ever even see the carry part of the comp. And yes this is insanely above market, so you are at $250k all in as an A1? I haven't heard this level of comp at a traditional PE shop before. What is the economics at this firm and what is the pie for the partners.
If you keep the vested part you’ll see some return even if you leave. Assuming fund hits hurdle
I am currently evaluating a possible move to the buyside but I still haven’t negotiated salary. What is the salary these days for an Associate 0/1 in MFs? Any datapoints would be appreciated.
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