Hi all,
On a throwaway for obvious reasons. Would like to get a sense from others in the NYC area if I'm being underpaid or not given tenor, fund size, and responsibilities to get a sense for market
Experience - 5 years total (2 banking, 3 PE at MF), have been quarterbacking deals (VP responsibilities) for over a year now including docs, diligence, negotiations, underwriting and portfolio management
Comp - ~300 cash, 325 DAW (w/ vest)
Where do VP's price in today's market? Would value feedback from anyone who's recent made a move at this level / further along in careers to get sense of if i'm getting screwed or not and what to expect when speaking with recruiters
Thank you
What’s DAW?
Are you a vp or do you just perceive yourself as having “vp responsibilities”
My initial reaction is that with 5 years experience you are not underpaid, though maybe weighted more to daw than cash than I’d expect at that level
what is daw?
Any details on DAW? What is it? Annualized carry points?
For reference, cash comp with similar years of IB/PE experience. $325k at MM fund
There's a substantial bump between Associate and VP. As a 3rd year associate you are not underpaid.
DAW is dollars at work for everyone else, it's a way of dollarizing your carry. Think fund size * carry percentage * your bps of carry = dollars at work.
So if you are at a $5B fund with a 2-and-20 structure and you have 25bps of carry, your dollars at work are: $5,000 fund size * 20% carry * 25 bps = $2.5M dollars at work.
butcherer - What does that bump typically look like typically from associate to VP? Understand tenure matters for this type of stuff but I have many inbounds for VP roles elsewhere and don't want to "choke the golden goose" to chase a short term gain as I generally like where I work and the responsibilities/trust/autonomy I've been able to achieve
Cash should step up to ~$500k based on a handful of data points I know.
Agree, though caveat $500k is for MFs and will scale down as fund size scaled down.
DAW will also increase from what you have. Some of the headhunters should have good current info if you ping them for it.
I am not certain this is totally true in all cases as "bps" can refer to the entire equity profit value of the company or to a portion of the firm's portion of the equity. Be sure to check which applies to you.
For example, in a $100M equity profit scenario at 20% firm carry, 50 bps of total carry is equal to 2.5% of the firm's carry ($500k) while 50 bps of firm carry is only $100k.
Is DAW annualised or just an estimate of total carry entitlement across all funds?
Big difference between annualised $300k DAW vs $300k / {some average period of investment/divestment time across funds}
Typically a per-fund amount. You can make some assumptions for how much it is worth annually (e.g. by vesting period, by typical deal/fund life, by time between funds) but obviously a lot more assumptions there.
Thanks for clarifying.
So is 325k DAW an annual grant m or cumulative amount?
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