Overpaying Shops Thread
Saw that there was a thread discussing underpaying shops in PE. Could anyone throw some names and numbers out for firms that pay above market? Names outside of the obvious (Apollo, H&F) would be helpful! I think anything above $250-260k would be considered above market for first year associates? Feel free to comment if otherwise
I would say >$300k is considered high at the associate level. I believe AmSec and Lindsay Goldberg are around this level. MDP and GTCR are in the $275-300k range which is basically infinite money when you're a 24 y/o living in Chicago.
GTCR is $290k for first years. They don't provide meal stipends or pay for Ubers though.
I think Berkshire upped first year comp to $300k recently (in line with AmSec / Lindsay Goldberg). Don't think it's a secret that Centerbridge pays very well (~$400k).
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Is this total comp or base?
Lol dude what world are you living in that’s paying $300k base
I’m sleep deprived and hopeful
at PM/MD/principal level you can get paid $300k base
I've heard Berkshire will invest $10k for every $100mm they put to work for Associates. A billion dollar equity check would mean an associate has $100k at work. Incredible perk. I think Berkshire might have best comp package of anyone when you consider perks like that.
Cove Hill is above $300K too
Any idea on comp for analysts?
~$180K all in. ~$130 - 140 base
Highly dependent on which market segment (MM, UMM, MF) you are talking about. >$300k is the norm for UMM / MF. Some brand discount at Carlyle Blackstone etc (but still around $300k)...
Onex, New Mountain, CVC etc. ~$330k
AmSec, Veritas, GIP etc. ~$350k
Warburg / TPG $360-$370k
Does TPG really pay mid 300s for first year associates? I thought it was much lower
Yup can confirm. Close friend works there.
How’s KKR nowadays? Definitely up their I can imagine despite the discount.
~$315k first year associate
Can confirm Veritas around $350k as well
Anyone know who’s highest paying at asso / senior asso level for infra funds? Other than GIP
Interested as well.
Does anyone know if the top secondaries funds (that focus on GP-leds) pay anywhere close to the 270-300k figures we see for regular buyout funds?
Not sure Ive seen shops pay this for first year associates. More common for senior associates to be in high 200s - mid 300s.
Not gonna lie, sanity check here says $300k too high for 1st year associate
I was under the assumption the market for first year associates are around ~240k. I think some megafunds do pay 300k+ though
With many banks paying 1st year associate $300k+, it's just keeping up with competition
Generally for PE, yes that's top of the range unless you're at a MF/UMM fund mentioned here. When I was at a MF as a Y1 associate I got way above the 300 mark while friends at MM/LMM funds were getting comp capped at 200K in some cases. Totally depends on the shop you're at.
Confirmed recently annualized 1st year comp at Apollo is $450k (bonuses are YE, associates start in August). Total comp expected to appreciate by $100k. Anyone heard anything different?
I guess then 2nd years (1st full calendar year) are making like $550k plus the one-time bonus...is this fake?
I’m pretty sure this is too high even for Apollo. I have heard $375k annualized for first years which increases by 50k each year until you’re a principal. This is all excluding one time payments
Even that is great.
Can confirm the Apollo comp though I know it was around 400K-430K when I was there. Comp appreciation becomes much more subjective for Y2 other than base which has a standardized increment upwards.
Is it just me, or are even a lot of MFs below the comp for EB associates?
Mid-top 1st year associate at my firm before signing bonus is $350-375k all in... and that was before the 25k bump in base. Likely will have gang busters bonuses this year due to insane deal flow. Wouldn’t that be higher than basically all PE funds besides Apollo and center bridge?
Yup that's correct, banking especially now, will pay more than most PE roles barring the ones mentioned above.
I understand there are outliers here and there, but realistically don't you bar yourself from the buyside if you go A2A?
Vista underpays at Sub 300k,
Seen Ares being quoted at 350k-380k ASO1
Yet to hear from someone directly at Ares quote over 280-290. Can anyone confirm this
Multiple posts on other threads quote it at that level. Where did you see 290? Seems more like a private credit number.
Are any of these shops actually "overpaying" or are they just appropriately comping you for the grind and burnout?
it may sound like overpaying but it's really not depending on what industry you're comparing it to. You can go work for FAANG and make 200k on a 30-hour work week or go to Apollo and make double that on triple the workweek. You decide.
It’s probably overpaying relative to the direct value an associate brings to the table, but you’re paying for 1) promising talent in the hope that 1 or 2 of them actually are able to generate value down the line (even if you’re 2 and out - if your alumni are heavy hitters it’s great for you), and 2) someone willing to put up with the hours.
I make nearly $300k in my 20s in a MCOL city... this is objectively an outrageous amount of pay for my age to basically be a specialized project manager, but there are still times at 3am that I wonder if I shouldn’t take a 60% pay cut to work 8-6 with weekends off
As an Associate at one of the shops mentioned here I would say this is spot on. Even the $300K+ they're paying me is not worth it. Leaving soon.
mind sharing what type of role you're headed to?
It's worth it for two years and that's it. Power through as long as you can and recruit in parallel (which it looks like you are doing anyway). You'll always feel like you're not getting paid enough when you're getting boned left right and center day in and day out. The money can be found elsewhere and in time, it's most important to take care of yourself. FWIW, at my MF most of the principal+ folks were laterals unless they were joining as an associate and somehow connected to senior management.
$300k isn't worth it? Care to elaborate?
Heard from a friend that Francisco was $320k as an associate
Believe Kelso used to be around $350
Once you make the switch from cog in the wheel to becoming an actual producer, you realize how little money $300-350k is in finance. For stars this can happen 2 years out of school, and for others this takes 8. $300k is just what you pay to execute the basic tasks and not much else. You know what a star producer is when you see one, and those guys get promoted or go to HF.
This is so true. Seeing seniors drop 200-500K without a thought for co-invest opportunities both in banking and PE really puts things in perspective wrt juniors looking to scrape a 350K comp package (obviously nothing wrong with this and the logical train of thought)
Spin on the original question: what shops offer carry, co-invest / levered co-invest to first year associates?
Have not heard of it at any MF
Yeah no MF offers this at all. No UMM fund either. Once you start trickling down in fund size you may see it but it'll generally be the spots which haven't historically had a 2 and out program for associates which may offer carry to juniors.
No regarding carry, but (levered) co-invest definitely standard at most if not all MFs.
TH Lee allows associates to invest up to $25k per deal (at least out of their flagship fund).
Bump... maybe any MM funds that pay more like UMM / MF?
I think firms like Cove Hill, Lead Edge Capital, and Insight pay a lot for their analysts. Not sure about associates.
Anyone know how much top VC firms are paying?
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