Private Equity Perks
What kind of perks do people at MM Private Equity firms get? Is the same, worse, or better than banking? For example, do you get car service, SeamlessWeb (or other comped lunch/dinner), gym, laundry, first class/private flights, etc.?
I have a friend at a relatively unknown private equity firm based out of a regional city that gets chartered flights to the search function. BAM.
Thanks. If you did the search and came up with relevant results (not just one post here and there, but an entire thread), would you please post the answers or links for everyone's benefit?
If you didn't do a search yourself, then go do one and you'll realize that there is no one single thread that focuses on private equity perks.
If you heard of a PE associate flying private chartered jets all bets say its a ponzi scheme or similar fraud operation.
First Class Rail and, if you need it, first class flights, a season ticket for your football (soccer) team, lunch if you're working through... That's about it really at the junior level.
Season tickets for soccer? Is this is in the US or elsewhere?
In Private Equity, it really depends on the place you're working. There is no consistency across the board. At my old shop we didn't really have any perks. We didn't work late enough to stay for dinner or need private transportation home. I'd say the biggest perk is that people who want us as clients would frequently produce free tickets to sporting events. If we wanted to go to a Bruins / Celtics / Red Sox game, all we would need to do is call up the lawyers / accountants and ask.
The other benefit is that you're generally playing with your own / your portfolio companies' money. This means more flexibility when choosing which hotel to stay at, which airlines/flights to take, when to take first class, etc.
get to send really late emails to bankers and lawyers and thank god you're not one of them
+1.
It obviously depends on the shop and your hours. I know a few firms based in NYC that have their own plane, in-house chef and gym. Then again, there's a very GP-heavy ownership structure so its' mostly the partners paying for those costs out of their own pockets.
Compbanker pretty much nailed it. it also depends on the hours, lifestyle, etc.
noted
PE compensation package / perks (Originally Posted: 03/18/2012) aside from the Base + Bonus, is it common to get profit sharing? Thank you
Are you serious? A perk is exactly that, it's not a negotiation point. Second, I'd ask about 401k match and vesting, but again that's a PERK, so I wouldn't be trying to play hardball unless it's so important to you that you'd be willing to walk because of it.
I'd be weary of trying to negotiate or beat a new employer down for anything unless it's so important that you'd walk be because of it. 99% of the time you're overstepping and will rub people the wrong way, and if they come back and bitch slap you it's a pretty embarrassing way to begin you professional relationship.
Hi Marcus,
Thanks for your reply. I understand, but just want to make sure what I'm getting is not totally different from what is market. Do you have any color on the profit sharing part, and co-investing in funds?
Does anyone else in PE have any color on the packages?
I don't think reputable funds pay carry to pe-MBA associates, but I could be wrong.
If it's a large fund I don't think you're going to see any profit sharing as a pre-mba.
I found this thread that may be a little helpful to those interested: http://www.wallstreetoasis.com/forums/private-equity-perks
business class air travel and 5 star hotels = points, miles, etc.
That's the main "perk"
Perks of Private Equity (Originally Posted: 07/28/2013)
Apologize if this topic turns people off, but just generally curious. Have heard tidbits here and there but was looking for a more general comprehensive list. I know many times you can receive spending stipends on products/services from portfolio companies, etc.
Any input on specifics would be nice? Talking about anywhere between MM and Mega.
The link I just posted is not entirely related to private equity, but there are several posts that talk about perks on the buy side //www.wallstreetoasis.com/forums/perks-of-working-in-financial-services
Highly dependent upon the firm, position, and fund performance but based on my experience:
1) Free or discounted products from your portfolio companies 2) Private jet or helicopter travel 3) Portfolio company board representation (obviously much less common at megas for junior guys) 4) Invites to golf tournaments, charity/sporting events, etc. 5) Lots of random gifts from bankers, lawyers, LPs, etc. after deals such as wine, food baskets, event tickets, sporting equipment, etc. 6) Team building trips and exercises 7) Expense accounts 8) Ability to participate in the carry and/or co-invest
noice - can someone do one on hf?
There was a rumor that at a Mega Fund the entire team took a private jet to go skiing in Colorado for the weekend. All expenses paid including the lift ticket.
^trips like that happen. not all the time. but they do happen. christmas parties, annual LP parties, parties with investors and bankers. can get pretty wild
This also varies from firm to firm depending on the culture. Some firms are flashier, some are more low key, and some are just frugal.
I mean just do the math...
A $1B fund has $20M in management fees a year. Say they have 20-50 employees. It's not hard in the slightest to do a few amazing company trips a year as well as give some good perks.
Having a lot more resources to learn about an industry - in banking you just put the names of consulting firms in the footnotes, on the buyside you can actually talk to them and learn more
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