Post associate level PE BD Comp

Based on the most helpful WSO content, transitioning from an investment banking background into a private equity business development (PE BD) role can be a strategic career move. Here's a breakdown of what you can expect in terms of responsibilities and compensation trajectory in PE BD roles at large funds:

Day-to-Day Responsibilities:

• Market Research and Deal Sourcing: Identifying and evaluating potential investment opportunities. This involves a lot of market research to understand industry trends and identify companies that fit the investment criteria of the PE firm.
• Networking and Relationship Building: A significant part of the role involves building and maintaining relationships with investment bankers, advisors, and company executives to source deals.
• Initial Deal Screening and Evaluation: Conducting initial due diligence on potential investment opportunities to assess their viability and fit with the fund's investment strategy.
• Deal Execution Support: Assisting in the deal execution process, including coordinating due diligence efforts, financial modeling, and preparing investment committee materials.

Compensation Trajectory:

• Associate to Senior Associate: Compensation at this level typically ranges from $125,000 to $200,000+ all-in, depending on the size of the fund and geographic location. The range is broad due to the variability in fund sizes and locations.
• Vice President (VP): As you move up to a VP role, compensation increases significantly, reflecting the higher level of responsibility. While specific figures are not provided in the context, VP roles in PE can see all-in compensation in the mid to high six figures.
• Principal: Reaching the Principal level involves a further increase in compensation, with total compensation potentially reaching into the seven figures. At this level, carry (a share of the profits generated by the fund) may become a significant component of compensation, although this can vary widely between firms.

It's important to note that the availability of carry and the specifics of compensation packages can vary significantly between firms and even within different funds at the same firm. While BD roles in PE are less likely to receive carry compared to investment roles, it's not unheard of, especially at senior levels.

Given your background in private equity investing, you bring valuable experience that could be highly beneficial in a PE BD role, especially in terms of deal evaluation and execution support. Networking and leveraging your existing contacts within the industry will be key to finding opportunities and advancing in this career path.

Sources: The rise of business development roles in the industry, Business Development Role at PE Firm, Private Equity Pay vs. Investment Banking Salary, From Private Equity Associate to VP in Private Equity, Q&A: Fundraising for Private Equity, Cap Intro & Investor Relations Career Paths