PE Associate Comp Benchmarking

Noticed many threads where ppl ask for comp for a specific fund. Figured it'd be best to compile all of PE associate comp in one place and how it scales up from ASO1 to ASO3.

Please specify ASO (1/2/3) and city and rough fund size.

For NYC, anecdotally heard of CD&R, Warburg, Apollo, Veritas as top of street paying ~$400k for ASO1. What do these firms pay ASO3 or Senior Associate, $500k+?

In Chicago, GTCR/BDT paying $330k for ASO1. Also have Waud paying $240k as of two years ago.

No figures on SF/Bay but think Vista in Austin has a unique structure with phantom carry.

What is street for MM funds ~$5bn fund size in NYC/NY? Is $320-350k reasonable to expect?

32 Comments
 

Based on the most helpful WSO content, here's a breakdown of PE Associate compensation trends and benchmarks:

NYC Mega Funds (e.g., CD&R, Warburg, Apollo, Veritas):

  • ASO1: ~$400k all-in is considered top-of-street.
  • ASO3/Senior Associate: While specific figures for these firms aren't explicitly mentioned, it's reasonable to expect $500k+ all-in, given the upward trajectory from ASO1.

Chicago:

  • GTCR/BDT: ~$330k for ASO1.
  • Waud Capital: ~$240k (as of two years ago).

Middle Market (MM) Funds (~$5bn fund size) in NYC:

  • ASO1: $320k-$350k all-in is a reasonable expectation, aligning with street-level comp for MM funds.

Other Notes:

  • Vista in Austin: Known for a unique structure involving phantom carry, though specific comp figures aren't detailed.
  • General MM Trends: For funds in the $500M-$3B range, ASO1 comp typically falls between $220k-$250k all-in, with raises scaling up for ASO2 and ASO3.

If you're targeting specific firms or fund sizes, it's always worth negotiating and considering additional perks like carry or co-invest opportunities, especially at smaller shops.

Sources: Life in Acquisitions (Analyst/Associate), Q&A: 2nd-Year REPE Associate @ Carlyle - AMA/Knowledge Dump, $125k - the New PE Standard?, Is this associate compensation competitive?, What is "Street" MM PE Compensation for Associate 1 & 2 and Senior Assoc. (3rd year)

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Which city? Feels low for NYC if it's LG

Very good for Chicago/LA/Austin though

 

You have 2-3 realistic options and all treat comp largely the same at that scale

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TPG has standard associate 1 and 2 comp across SF and NYC, and across all funds (growth, impact, buyout).

It’s a bit weird because they give you a stub when you join for the first 5 months, and then get you on a calendar year bonus cycle. If you leave after 2 years, you also get a half year stub. You also get a $25k starting bonus so I include that in my aso 1 number.

TC for associate one is ~$390k and about $20k higher your second year.

 

IIRC it’s something like:

$130k base first 5 months + $180k stubbed
$140k base first full year + $250k
$150k base the next year + $270k

When you come in you get a $25k bonus then $180k or $185k stubbed (so let’s say you get $75k your first December). So that’s $100k + let’s just say half of $130k base (even though it’s 5 months) = $165k. Then the next full year is $390k TC so half is $195k. So total “first year” is $360k. “Second year” the blended is closer to $410k.

 

Is the infra fund ECP? No step up in base seems tough or is that typical?

 

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