Private Equity Comp & Carry

Hi Everyone, 

The European Market (except UK) is very intransparent on comp and Carry for PE professionals across all levels. 
I am working in PE in Germany and want to create a comp set here. 
 

Please Post Title + Cash Comp + Bonus + Carry Allocation. 
Let’s call the titles: Analyst + Year —> Second year Analyst = Analyst2 or AN2

For the Carry let’s give Carry dollars at work assuming 2x returns. 
 

Open for other suggestions! I’ll go first: 

Associate3 -EUR  100k / 60k / c. 1m. 
thanks all! 

 

Have a friend who is Associate3 at a Nordic UMM fund. His comp is EUR ~180k all in. No idea about carry.

What fund size are you at?

 
Most Helpful

Short write-up:

Recruiting: Relatively unstructured (bit more planned only in London), funds usually realize short-term that they need additional support, i.e. sometimes you can find jobs with very short notice. On the flip side, this means that you cannot really anticipate which funds have needs. Topics in interviews widely differ.

Work: Lots of deal origination, i.e. you screen many IMs and get a quite decent exposure to a lot of deals. Live work on a deal is usually 4-6 weeks with slightly lower peaks compared to PE, imho less bitch work but that may only be my view. Significantly less portfolio work per company as you mostly monitor, but you also have significantly more companies (e.g. I've got 6 as an Analyst). All in all quite nice with good comp (actually higher at the beginning compared to most midcap PE funds) and good WLB (avg. 9-9 with hardly any weekend work, Fridays I fuck off at 5-6pm, last year given low deal flow even less).

Comp: As I said, north of 120k as AN1 but keep in mind that in most funds, progression within one level is significantly worse compared to banks with fixed AN1/2/3 base salaries etc, here I get a few k base more each year and bonus ofc depends on your firms performance (more stable than in banks), good base bump when you get promoted.

 

Associate 2 (4 YoE) in a European MM fund (1-3bn latest fund), based in Germany.

€130k base / 40-50% bonus / several other benefits (long-term incentive, car allowance) equating to another 20-30k cash p.a.

 

There is something I would like to check -

For large-cap latest raised funds (https://creativecapitalpartners.co.uk/insights/the-world-s-largest-priv…) of >$20bn, assuming they perform 1.5x-2x MOIC (yet to be seen given raised in 2020-2022, except CVC), is it fair to say that a VP 1 can expect 10m-20m in carry ? (50bps, assumes catch-up mechanism so that the hurdle rate does not influence the computations).

Seems enormous to me; although I appreciate you need to stick around for 7+years after VP 1 for this to materialize.

 

Probably closer to 20bps, and that is if you are not a publicly traded MF where some of the carry goes to shareholders (e.g. EQT about 35% of the pool goes to them). It is still massive sums of money, but as you said need to stay for a while for it to materialize and you can get fucked out of it pretty easily.

 
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