Didn't see much on this, so excuse me if there are posts, but what do you guys typically see for post-MBA senior associate/VP compensation? Call it a $200M late stage VC fund, ten investment professionals, five senior guys (partners and other mid-level team members). Base, bonus, and carry - what are you guys seeing?
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No idea for VC, but I know Cali MM Sr. Associate from HWS pulled in probably $300-350K all-in. Had previous MM experience plus BB IBD at a top group. Became VP not long after.
It depends on the fund.
MM funds sometimes bring people directly as VP while others bring you as a Sr. Associate. $300 to $350K sems too high on average though it could have been a very smart guy.
My two data points are HBS/GSB guys with BB IBD and PE experience (one MM and one Blue Chip fund) was $250K and $275K, respectively.
Though not well known funds so might explain $50K difference.
Rough estimate of AUM of the funds?
$500M and 1 BN I believe.
To be fair $275 is major money though I wonder how a guy manages to get $350K
Didn't say it was average. Fund size for his group is between $750mm and $1.25B. They are still upper MM investors.
His previous fund closed between $800mm and $2B.
Really starts to vary based on fund size/leanness and how much carry you are given. Some really large or lean funds start getting to the $1M+ range super quick after the associate position (also depends on whether it is a 2 or 3 year associate program). You can do the math yourself, assuming that you might get a bit more in cash comp (say 300-500 or so vs. 200-300 as an associate), and the majority will start coming from carry. Take the carry % (maybe like 25BPs to 200BPs, again depending on fund size/type/leanness) and use fund performance. So in a $10B fund where you are getting 50BPs, that might be .5% of 20% of $10B over 5-10 years, so like $1-2M/year. So it can be quite high even early on (that is definitely on the highest end for that age range though).
Thanks for the info. How did they secure the position? On campus recruiting at HBS/GSB, invited back to their firm, or just by networking?
Networking, one for the summer and decided to comeback then the other guy work at a different fund during the summer and network his way in to another fund for full-time.
PEs recruit on campus but those are very hard positions to get but there are people who get offers during the normal recruiting process but those guys are mad legit even for HBS/GSB standards.
You looking to do PE?
Actually one of the guys told me that sometimes you make more money at smaller fund than a bigger fund. His rationale was similar to yours.
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