What’s good fellas. I just received an offer from a MF PE firm and wanted to gauge comp based on the offer letter. My question is if it is normal to specify bonus in the contract? I’ve heard some PE shops do this from my friends, but this particular firm only gave figures for base salary. Just want to benchmark here - would be great to get everyone’s thoughts.
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Have received 3 offers and all listed a target bonus in the letter. Doesn’t hurt to ask if it’s not specified.
My MF provides target bonus in all associate offer letters (obviously caveating it as discretionary).
You can definitely ask but honestly unless you are truly considering not signing over this I'd just accept the offer enthusiastically and figure out bonus ranges later from other associates at the firm. Imo not worth coming off as the guy who is only there for the paycheck before you even start. (I know some people will disagree with this but in my experience even if everyone does PE for the money people want to feel like juniors are there for the learning vs the money.) Also tbh every true MF buyout group pays within 10-30K of each other for target so its unlikely to be a needle changing data point.
Of course all of that only applies if you are very likely to take the MF offer. If you are weighing other options and might turn them down, then might as well ask what target is or ask for range.
What was the TC range for ASO levels at your firm, if you don’t mind sharing, and is it a BX / KKR type?
My offer letter specified bonus target of 1-2x base
Hey there! Congrats on the offer, that's a big step! Now, onto your question. It's not uncommon for PE firms to only specify the base salary in the offer letter. Bonuses in the PE world can be a bit more fluid and are often tied to the performance of the fund and your individual contribution.
However, it's always a good idea to have a clear understanding of your total compensation package. If it's not outlined in your offer letter, don't hesitate to ask your firm about it. They should be able to provide some clarity on how the bonus structure works.
Remember, it's not just about the base salary, but the entire compensation package. And don't forget to consider other factors like the firm's culture, the learning opportunities, and the potential for growth.
Hope this helps and best of luck with your decision!
Sources: The Truth Behind PE Compensation, Can someone please explain this to me?
Gz on Clearlake
Did you get after the super today
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