PE Analyst & Associate Comp

Based on the most helpful WSO content, here's a detailed breakdown of PE Analyst and Associate compensation, including work-life balance (WLB) insights:

Compensation and Work-Life Balance for PE Analysts and Associates

Fund Size Categories:

• LMM (Lower Middle Market)
• MM (Middle Market)
• UMM (Upper Middle Market)
• MF (Mega Funds)

Positions:

• Analyst
• Associate

Compensation Breakdown:

1. Analyst Compensation:

   • LMM Shop (Tier 3 City):
     • Cash Compensation: Not specified
     • Bonus: Not specified
     • Total Comp: Not specified
     • Hours: Typically 8-6, with occasional work taken home once or twice a week.
   • MF/UMM Analyst (Tier 1 City):
     • First Year: $220K - $250K
     • Second Year: Around $250K

2. Associate Compensation:

   • MM PE (Various Locations):
     • Associate 1:
     • Base: $95K
     • Bonus: $95K
     • Total Comp: $190K
     • Associate 2:
     • Base: $105K
     • Bonus: $110K
     • Total Comp: $215K
   • UMM/MF PE (NYC):
     • Associate 1:
     • Base: $160K
     • Bonus: ~$130K
     • Total Comp: $290K
     • Associate 2:
     • Base: ~$170K
     • Bonus: ~$200K
     • Total Comp: $370K

Work-Life Balance (WLB):

• Analysts:

  • LMM Shop: Generally work from 8 AM to 6 PM, with some work taken home occasionally.
  • MF/UMM: Not specified, but typically more demanding hours compared to LMM/MM.

• Associates:

  • MM PE: Hours not specified, but generally expected to be demanding.
  • UMM/MF PE: Hours not specified, but typically involve long hours, especially in Tier 1 cities like NYC.

Additional Insights:

• Technical Knowledge for Analysts:

  • Basic technical skills and understanding of the business are essential.
  • Interviews are straightforward, focusing on technicals and business understanding.

• Progression and Responsibilities:

  • Analysts and Associates in smaller shops may take on multiple roles due to team size.
  • Responsibilities can include sourcing, diligence, portfolio monitoring, and modeling.

This should give you a comprehensive view of the compensation and work-life balance for PE Analysts and Associates across different fund sizes and locations.

Sources: "Analyst" vs "Associate" in PE (2018), LMM PE compensation, recruiting and port co. work, 2023 Associate Compensation Megathread, MM IBD (Analyst) > MM PE (Associate) > MM PE (Senior Associate) - Here to answer any and all questions!, MM IBD (Analyst) > MM PE (Associate) > MM PE (Senior Associate) - Here to answer any and all questions!