Accepted a 2021 offer at a MM PE shop in a Tier 2 City: Chicago/DC/Atlanta. AUM of $1B+ and raising a fund of around $500M. I thought the salary they offered $100K base + 100% bonus target was street, but I am seeing a lot threads saying that street is closer to $250K. Anyone have any clarity around this?
Trending Content - Private Equity Forum
Career Resources
Agree that $200k is certainly market for a MM fund of that fund size, especially in a Tier 2 city. If you're $200k or above, that's more or less market for MM PE, whether you're in a Tier 1 or Tier 2 city.
I would also caution folks to not get so focused on $200k vs. $250k for an Associate role. $50k pre-tax is like $30k post-tax. In the grand scheme of things, that's immaterial relative to thinking about whether an opportunity will set you up for the medium to long-term (be it staying at the same firm or giving you the right learning experiences for the next career move).
Focus more on learning experience, responsibility, and long-term career advancement. And that does not mean MF/UMM or bust. There are plenty of MM/LMM firms that regularly hit >3x CoC but aren't particularly well known. There's absolutely nothing with trying to develop a career in a firm like that (and depending on the person, arguably better than MF/UMM). As you gain more work experience, you'll learn to appreciate MF/UMM vs. MM/LMM is highly dependent on an individual's situation. I know experienced folks (>5 yrs of work) that turned down MF/UMM opportunities because lifestyle sacrifices weren't worth the pay (not to say MM/LMM automatically equals better lifestyle) or they realized it's much harder to set yourself apart and move up in MF/UMM.