MF Headhunters Take 30% of Your Salary??

Can anyone verify if this is true? My colleague just told me about his roommate who went from IB to work at Carlyle and has to pay his headhunter 30% of his Analyst salary. Absolutely absurd if this is industry standard 

Comments (12)

  • Analyst 1 in PE - LBOs
Nov 24, 2022 - 4:02pm

They don't take it from you. The fund pays them in addition to paying you your entire salary.

If the guy is personally paying his HH he got scammed.

  • Associate 3 in PE - LBOs
Nov 24, 2022 - 5:12pm

They don't take it from you. The fund pays them in addition to paying you your entire salary.

If the guy is personally paying his HH he got scammed.

I think the point is that basically instead of PE fund paying you 400k, they pay you 300k and the HH 100k.

It is unfortunate that we become conditioned to think it's not fungible…

Most Helpful
  • Investment Manager in HF - Other
Nov 24, 2022 - 7:34pm

They don't take it from you. The fund pays them in addition to paying you your entire salary.

If the guy is personally paying his HH he got scammed.

I think the point is that basically instead of PE fund paying you 400k, they pay you 300k and the HH 100k.

It is unfortunate that we become conditioned to think it's not fungible…

This would only work if all of your competitors had similar hiring costs (used headhunters, etc). If your competitors pay $400k and you are paying $300k because you need to pay a headhunter then you will be screwed. 

Additionally, firms view the headhunters as an outsourced recruiting team. So instead of hiring internally (paying salaries, bonuses, etc) they hire headhunters. So if the headhunter isn't there then it's not like the costs disappear, they move to more internal teams sourcing talent. 

  • Analyst 1 in PE - LBOs
Nov 24, 2022 - 7:42pm

It doesn't work like that. As the other response said, it's viewed as a recruiting cost, so it comes out of the budget that otherwise would have been allocated to bigger HR dept.

  • Analyst 3+ in IB - Cov
Nov 24, 2022 - 4:02pm

The candidate doesn't pay - the fund pays the fee.

  • Associate 1 in RE - Other
Nov 25, 2022 - 4:37pm

This is standard across most industries. I've been on both sides of the headhunter process. Typically good firms are going to charge ~30% of starting base salary to place a candidate. There's then also lots of other contractual terms that can go into effect as well (I.e if you place a role, and then fill it with a candidate you found yourself, you still owe the headhunter money sometimes)

  • Associate 2 in PE - LBOs
Nov 25, 2022 - 8:54pm

Nisi qui accusamus vel nihil blanditiis. Perferendis qui natus minus nobis.

Laborum vel quia totam molestiae ducimus. Qui nihil eius iure. Quia eos possimus voluptas tempora voluptas numquam. Dolorem ut voluptate eveniet. Quo iusto ducimus aliquam et qui eligendi libero. Officia aut ad ex et omnis voluptatibus quibusdam sunt. Ducimus dolore dignissimos accusamus vitae provident eveniet.

Sunt vero pariatur accusamus qui eos qui eos id. Debitis occaecati ipsa molestiae. Dignissimos autem qui omnis vitae maxime omnis sequi. Nulla maxime porro et aliquam. Deserunt magni laudantium sunt aut molestiae in. Neque qui sint voluptatem et commodi. Qui vitae velit voluptatem.

Dicta minima excepturi reiciendis ducimus quia architecto. Facere reprehenderit expedita ab repudiandae optio eius iure. Voluptatem maiores repudiandae hic. Aspernatur eos vitae exercitationem vel quasi et laudantium. Molestias rerum modi eum qui repellendus. Dolores magnam odio nesciunt voluptatibus.

Start Discussion

Career Advancement Opportunities

November 2022 Private Equity

  • The Riverside Company 99.5%
  • Warburg Pincus 98.9%
  • Blackstone Group 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.8%
  • Bain Capital 97.3%

Overall Employee Satisfaction

November 2022 Private Equity

  • Ardian 99.5%
  • The Riverside Company 98.9%
  • Blackstone Group 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.8%
  • Bain Capital 97.3%

Professional Growth Opportunities

November 2022 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 98.9%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.8%
  • Ardian 97.3%

Total Avg Compensation

November 2022 Private Equity

  • Principal (8) $676
  • Director/MD (22) $599
  • Vice President (83) $363
  • 3rd+ Year Associate (83) $276
  • 2nd Year Associate (189) $264
  • 1st Year Associate (367) $227
  • 3rd+ Year Analyst (28) $157
  • 2nd Year Analyst (77) $132
  • 1st Year Analyst (223) $122
  • Intern/Summer Associate (25) $68
  • Intern/Summer Analyst (276) $58