PE Comp
For those who have gotten offers, what is market all-in comp? Would be sweet to get just general size of fund (Mega, Large Cap, top-tier MM, MM, smaller MM, and sub-PEI300 etc.) and best guess at all-in. I've heard some mega funds paying close to 400K (unconfirmed), most large cap through MM in the 200-300K range (skewed to the lower end of the spectrum), and some small MM ex-NY paying sub 200K.
Thanks.
At the analyst level (where jobs are few)? Or the associate level?
A pre-MBA post-IBD role. Some firms call this Associate, some call this Analyst, but as far as I know this is the typical entry point for PE.
your numbers sound about right. keep in mind that it's very hard to ascertain what all-in comp will be because most firms are purposely mum about bonuses, and even broad ranges are hard to obtain. many shops now (especially the large-caps) are giving phantom carries as part of your total comps, which is obviously impossible to pinpoint what it'll be worth. but again, your estimated ranges are in line with what i've been seeing and hearing.
each year, there will always be a couple of firms that go way above everybody else (e.g. BX/KKR a few years ago, New Mountain last year, etc.), but this industry, as a whole, is one that does not like to chase outliers when it comes to compensation.
@kalice123 correct me if I'm wrong, but don't BX/KKR pay better than other megafunds because their employee/aum ratio is relatively low so they can afford it? For example is pay at bain cap comparable to those funds even though they have so many more employees?
AUM per employee is an important metric to look (and this is especially important for hedge funds). i think this is a factor that sometimes people overlook when evaluating opportunities because it is directly correlated with the quality, success, and perception of the firm. however, i don't think it has a large impact on compensation at the entry level (i.e. pre-MBA post-IBD). for large-cap PE, associate comps is largely market driven. e.g. KKR paid that much partly because they wanted to keep their people happy so they wouldn't leave for BX, and vice versa. NMC paid above the market because they felt that they needed to do that to attract the caliber of people who would otherwise go to the megafunds. to further illustrate, if BX needed to pay their best people only $100k to be happy and stick around, because all of the alternatives are paying even less, than that's likely all BX will pay. when you're at the bottom of the totem pole, you don't really reap the benefit of the high AUM/employee ratio (whereas it's not a coincidence that, for example, BX and KKR both have its top 2-3 people on forbe's billionaires list).
so getting back to your question, bain cap's ratio will certainly not prevent it from paying comparably to its peers.
Why/how would anyone who just got an offer be able to inform you on all-in comp?
guess Marcus is right--out of curiosity, can anyone inform me as to what the composition of pay is like for megafunds?
if its almost 400k total, how much of that is salary, bonus/carry
We just finished recruiting and the Megas tell their recruits their numbers will be between 650K - 800K for two years all in (KKR, BX, TPG Cap, etc.) But you will pay for it. Breakingnew is right about the employee/aum stat, but this just means there are more opportunities to look at per associate. You may get paid the extra 50-100K per year at those funds but you will surely pay for it with workload (although you could always go to a mid market or smallcap and work just as much). Your numbers for the mid markets sound accurate.
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