All,
I've recently received an offer to join a minority investment fund (~$400M) which sits within a larger, buyouts MM PE fund in NY (~$2-$2.5B) range. The compensation package is ~$200K all-in and I was wondering if this is in-line with similar opportunities.
Thank you for your help!
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Is it for an associate position (i.e. post 2-3 years of banking exp)?
Yes it is.
The compensation is in line. I have worked in MM PE before.
interested
This is slightly above what my friends at smaller shops ($1-1.5bn) are making. I'd say they're at 90k base/90k bonus
Surprised at this considering second year IBD analysts at major firms were just lifted to $95k base.
My firm just raised our fifth fund at ~$1bn and first year pay is $225k. GI Partners in SF is similar to our strategy / size and runs at $230k.
Yep, I agree, it's on the lower end and it's not exactly a vanilla buyout shop (although they do make majority investments, but also do mezz/growth equity/other stuff). It also has a great lifestyle/partner track potential from what I've been told, and the partners are doing quite well between the 3 of them.
A few other data points - a $2-3bn shop (across several funds) pays $110k base/$110k bonus and offers co-invest/shadow equity opportunities in the ballpark of $100k over your 3 years of being an associate.
One other firm that I know of (approx $1.5bn across two funds) pays $100k base/bonus and has a $30k signing bonus.
Most MM / lower MM PE firms I've seen pay between $170k - $230k, some with co-invest and/or carry as additional sweetener.
I don't think most PE funds have moved comp up to align with increases in comp in IB. Given that a lot of banks are promoting analysts after 2 years, $140k base salaries (for Associate 1), a decent signing bonus, and ~$25k annual increases in base salaries. Comp between IB and PE at the junior levels are pretty equal, if not better in IB.
MM firms aren't paying 170k anymore. Maybe lower MM firms. I know a few firms that were paying that before IB analysts got raises but had to move up to 200K+ to attract talent. Look for firms that provide co-invest or equity opportunities and that's how PE comp > IB
Can you explain what co-invest, equity and carry opportunities are? From what I read is that you can invest alongside the managers and the fund, but are a 25yo measly savings enough to make a difference in this type of opportunity?
I've worked as an associate at two growth equity/LBO shops with fund sizes ranging from $1B - $1.5B (AUM is larger). comp was: $120k base / $120k bonus $120k base / $110k bonus
so pretty in line
Your comp level is fine. Definitely in-line. The point above about mid-market PE firms no longer paying $170k all in is not true as there are several PE shops that (i) still haven't moved up and (ii) can still attract solid enough (if not top-tier) talent desperate for a change from a miserable life in banking. You would think the mid-market PE shops would have reacted quicker to the bump up in comp within banking but that's not the case everywhere - unfortunately certainly not at my shop.
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