PE Associate Bonus Expectations?
Just received an offer without a bonus target. Curious what is market for a shop with $1-3bn latest fund size as a % of base or in terms of total comp.
HH mentioned there's a stub bonus (which seemed pretty low if you annualize it) for the first few months before moving to the calendar year, but no explicit talk on first full bonus yet. Should I ask explicitly for them to provide this?
Congrats on the offer! It's always exciting to take the next step in your career. As for your question, it's a bit tricky to give a precise answer as bonuses can vary widely depending on the firm, the fund's performance, and other factors. However, based on the most helpful WSO content, it seems that for a PE Associate at a fund of that size, the bonus can range from ~80% to 150% of the base salary.
As for whether you should ask about the bonus, it's generally a good idea to have as much information as possible when evaluating an offer. It's a fair question and it shows that you're thorough and thoughtful about your compensation. Just make sure to approach the topic professionally and respectfully.
Remember, the goal is to have a clear understanding of your total compensation package, and the bonus is a significant part of that. Good luck!
Sources: Q&A: 3rd Year PE Associate ($10bn+ AUM, MBO/LBO, equity, mezz, distressed debt), $125k - the New PE Standard?, Private Equity Bonuses 2019, 2023 Associate Compensation Megathread
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