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What approximate fund size range? Are you talking about LBOs or growth equity or something else? I don't have many data points, but I do have a few.
Let's say LBOs, 1-2B AUM
Ahh not sure I have any specific data points in that range, so the best I'll be able to do is offer up generalities. You don't find too many multi billion dollar funds that are headquartered in cities such as Denver / Austin, but they do exist. From my experience there is almost always a pay discount in these cities, but it isn't nearly equal to the difference in cost of living. Based on my experience, you can expect a 10-20% discount to "market" on average, although the variability is quite high. Some firms will pay above market and some way below market, but I think it averages out a touch lower.
Remember, revenue to the management company is dictated almost exclusively by fund size. So being located in a low cost of living city will have no impact whatsoever on the amount of money available to pay salaries. In fact, because the firm has lower rent expense and an overall lower cost of doing business, in theory there should be MORE money available to pay salaries and bonuses than an equivalent size fund in NYC. However, this theory often does not play out in practice as I believe most of the cost savings tend to go to equity owners of the management company as opposed to paying the junior employees higher compensation.
I know this isn't precisely what you were looking for, but hopefully it helps.
super helpful... thanks for the perspective! much appreciated. and logic totally makes sense. Just trying to give myself some intel for potential negotiation
Two comps I can confirm for LMM under $1B funds. Not sure if the cities are T3 or T4, but certainly outside of NY/SF/LA and BOS/DC/CHI/PHL:
$75-$80K base - up to 100% bonus (about 5 years old)
$90-$100K base - Up to 70% bonus (1-2 years old)
Perhaps not exactly what you're looking for, but hopefully helpful.
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