PE VP Comp
Friends, it's the season for PE comp. Please share your comp with details willing to share across the buckets. I'll go first.
Fund Type (LMM, MM, MF): MM Location: NYC Base: $350k Bonus: $200k Total Comp: $550k Carry: $2.5mm DAW
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Boston
MM
VP2
$350K base + $225K bonus ($575K total comp)
$4M DAW
Nice- fund size?
TX
MM/ LMM
VP3
$600M fund
$215 base / $215 bonus
$8.3m DAW but across three funds ($1.4/$1.9/$5)
Life's gotta be good with that kind of comp in Texas
These base salaries seem very high to me, while bonuses seem low (total comp in-line). I thought VPs base salaries typically were closer to $250?
I wouldn’t be shocked if market has shifted to more base and 100% target bonus even if total cash is steady. Rent is up and bonuses don’t pay rent. Plus, we’ve got to have higher salaries than entry level lawyers (ew)
Approximate fund size? Also can you share how comp scales with each year (i.e., VP2 vs. VP1)?
What is carry vesting period?
4 years
Whats standard vesting period range? And range on DAW?
Vp1
$6bn latest fund vintage
base: 200k
bonus: 325k
carry: 2.5mm
What does 2.5mm DAW mean. Average of .625mm of carry a year?
DAW assumes a fund hits a 2x MOIC. So for a $6B fund (example above), there's a 20% carry pool after capital is returned. Therefore, a 2x implies $1.2B carry pool, so this individual got a ~21 bps grant which is worth $2.5M at a 2x MOIC (or $5M at a 3x MOIC, etc.).
VP2
LMM ($400mm)
TX (not Houston)
Base: $235k
Bonus: $265k
DAW: $3mm
These seems well above market, congrats
Math doesn’t add up. Assuming 3 associates 2 VPS, 2 MDs, 2 partners…. You’re 70% through your management fee.
Regardless, good for you brother! Strong comp
Above-mkt management fees. Not complaining!
Curious what your back of the napkin math is here?
Are you in Dallas PE? Would love to chat about the local market.
2% is standard PE management fee X fund size = annual management fees. Fees are the revenue of a fund and costs are the place (rent) and the people (salary and bonuses).
VP2
LMM $1b
FL
Base: $200k
Bonus: $200k
DAW: $1.5m
Bump for more LMM data points
VP3 / NYC (UMM / MF)
Base: 300k
Bonus: 450k ($750k All-In Cash)
Carry: ~$2.5m DAW (severely underwater, think ~5-10% expected realized value due to performance)
Other: 150k one-time retention bonus
Question for everyone: does vesting for the rest of you occur at the fund level or does it start when capital is deployed?
Question on the carry piece - how are you staying motivated and are you considering exiting to another firm? I’m starting to have somewhat similar concerns. Obviously cash comp at these levels is nothing to sneeze at, but man it must be hard to go through all the BS day in and day out knowing you aren’t going to see upside for another 10-15 years (I.e., hoping your next fund is more successful)
I agree, it's tough and I'm looking opportunistically, but the market for this level (Sr Vp / Principal) feels tough atm.
IMO, moving to the wrong fund (e.g., bad culture / fit) prematurely can be a career ender. I'd rather tough it out for a bit at a place where I've built up credibility / autonomy than risk it at a place I'm second guessing my fit at. We all know your first year at a new place is all about proving yourself (i.e., grinding) and I candidly don't have that many all out sprints left in me anymore (at my age) so I'm trying to pick my battles. I did it as a banking analyst, at my first PE, job, at every promotion level, etc. This career needs to start feeling sustainable at some point...
Congrats on Apollo
Not even close. Apollo pays way more and doesn't have a VP title.
I'd also guess Apollo "Principals" get at least 2x my DaW.
VP1
LMM
Tier 2 city
Base: $175k
Bonus: $125k
Carry: $1M DAW
Work 40-50 hours a week.
VP1
Non-NYC
MM
Base: $200k
Bonus: $160k
DAW: $3M
NY MF VP1 Base: $350k Bonus: $250k DAW: ~$5mm
How do hours look like?
It’s a megafund paying 600k in New York…take a guess
VP1
Non-NYC
UMM
Base: $200K
Bonus: $350K
DAW: $2M
Approx fund size?
$5-15B latest fund
You could drive a bus through that range
VP1
Texas - Large Metro
LMM ($500-$1 Bn Fund Size)
Base: $200k
Bonus: $200k
DAW: $2.5 MM
Good data points in this thread. I'm interested to know how many years of post-IB analyst (or PE analyst) PE experience the posters in this thread are averaging to get to VP1. Additionally, would also be relevant to know if there were an additional 2 years of MBA involved as well. As for me, I spent 2 years as an analyst in IB and 4 years total as a PE Associate (Incl. "Senior" Associate) prior to reaching VP1.
Texas native as well but in West coast currently at associate level. Mind if I DM you for some guidance?
I'm assuming this is DFW?
For all the carry / DAW, would be helpful to add the vesting schedule. DAW doesnt matter too much if you only vest 10% a year (which is like how my fund vests)...
For example, may have $3mm DAW, but im vesting 10% a year... so i treat it as an extra $300k of comp (i know my vesting is not market).
VP1
SF
SWF Direct (~2-3B new equity deployed p.a.)
Base: $250K
Bonus: $425K
DAW: equivalent of maybe $1-4M (depending on performance and promotions)
-
It's almost the same, came from large cap as VP. Hours aren't that much better bc you replace portco work with growth equity deals and when you do co-underwrites or recaps or direct buyout it's just as rough. Can be more politics if you're in the wrong group / your group head didn't come from a normal fund.
The more chill team is coinvestment/FoF, they are living the dream.
Is there a meaningful difference in comps for FoF team vs. Direct as your SWF?
Is there a large comp difference?
Yeah big comp difference afaik
How does this look like as a VP in Secondaries?
I love PE
There’s been a lot of talk of associate comp increases in recent years. Have you found VP comp has proportionately scaled / has anyone successfully negotiated for higher base and/or bonus after started your gig? My fund pays well below market (in line with its size 2-3 funds prior).
How many years of experience though. I know some places you are VP after 3 years, my firms has: associate 3 years, 2-3 years senior associate, and only then you make VP (which is after 3 years of banking).
As somebody 4 years at the firm:
London
Gbp 130 base + 140 bonus (c.usd 350k all in)
No co-invest
No carry (only get it in your 6th year at the firm)
AUM 45-50bn
Latest fund 10-15bn
I know I am getting screwed, just hope this posts makes others feel better.
Have you considered throwing tea into the harbor yet?
2023:
VP1
LMM
$175 / $225 ($400 all-in)
$1.5mm DAW
Haven't received promotion yet from sr. associate (should be in 30-45 days), but numbers below are what has been agreed to for VP1 year:
Non-NYC MM with latest fund around $4B
$600K all-in cash comp (split 50-50 bw base and bonus)
$5.5M DAW
so your $4b fund is paying Apollo money? You’re 2x above everyone else except the Apollo poster in this thread
Apollo is much higher than those figures and doesn’t have a VP title based on what I have seen.
$600K cash and $4-6M carry at 2x is standard for top performers at larger MM and UMM.
What was your sr asso comp
Sorry for the delay here. $215K base + $200K bonus
VP 2
Non NYC
$1.0 - 1.5B fund size
$200k base / $200k bonus
$4m DAW
Bad vesting terms
What counts as bad vesting terms compared to industry standard? Would be really helpful to know. Thank you
I’m pretty floored by some of this numbers in the LMM and MM…. Damn peeps are getting PAID
Would love to see some data points on alternative strategies (Credit, Secondaries, Co-Invest, Primaries, GE, VC).
VP1 at independent sponsor (fundless)
Equity AUM approx $120m
t2/t3 city
125k salary, 50% bonus target
DAW ~$1.0m (paid out deal by deal and good vesting terms)
Work 50-60 hours a week
How do you think about comp vs. traditional PE or IB? I feel like you're giving up a lot of cash for the potential of carry payout
Obviously not as great comp but generally not working the same hours these guys here probably are either. Though its definitely far from being a chill job. The carry aspect is good I guess as I can see actual carry payouts as early as next year (very low 6 figs). Its really so dependent on portco perfomance which is so tough right now that its hard to tell how much its going to materialize.
Has your firm had any distributions? Do you ever plan to raise a committed fund?
distributions: yes, and new fund: its likely
What is your timeline for payouts of carry?
MM firm in Tier 2 city. But anyone else worried their DAW won’t materialize at all. Fund underwater
Honestly as a sellside VP3 these numbers are lower than I thought. Vindicates my decision not to go buyside imo, I can’t imagine wagering so much of my comp on remaining gainfully employed at the fund in 10 years+ and hitting carry. Curious what people think the likelihood of their carry paying out at 2x net or better is?
What is the path to sticking around behind an execution role in banking? How will you get new clients? Does your comp have a finite life?
Valid questions. I’m in a growing space with an abundance of txn volume and a brain deficit. Lots of white space. As to biz dev, decent mix of inbounds to the firm that are too much for my bosses to credibly cherry pick them all and me being a specialist in a niche but growing sub-space that most people don’t get, so I have a “moat” around my personal advisory business, both internally and externally.
Also - it’s not apples to apples. Judging from responses in this thread, my cash comp is significantly higher, and the small amount that is equity is liquid public stock that reports and goes up every quarter and vests within a pretty short timeframe. By comparison, you guys are getting paid less and sure, if your carry ticket comes up then maybe you’re a bit better off, but with significantly more risk involved. I get paid every year, and as much as I like my own cooking professionally speaking, I’m not obligated to eat it (and pay for it!) if I don’t want.
To each their own - you couldn't pay me enough to remain in client services and grind overnight for bullshit pitches.
Totally valid point which I respect. These kids are always like “what should I do, buy or sell?” And my response is always “…well, what do you like to do? Bulls make money, bears make money, pigs get slaughtered.”
I personally love client service. But I would argue that if you’re doing it right, it’s not about bullshit pitch decks that keep you up all night. I have the juniors make a stack of glossies so we’ve got something to anchor around, but when I pitch it’s straight to the Q&A, I eschew the bullshit in favor of conversation.
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