Private equity secondaries - insight + comp
Hello! Would anyone in the secondary PE space be willing to shed insight on where secondary job opportunities are headed? From what I have learned, I am interested in the space and curious about comp (base + cash). There doesn't seem to be much info out there. Does secondary comp at MF compare to traditional PE comp at MF? For MF like Blackstone (Strategic Partners) or Evercore's PCA team, what does comp (case + bonus / carry) look like, and what is the expected progression?
Ah, the elusive world of PE secondaries! Let's swing through the vines of information we have:
Job Opportunities: The secondary market has been growing, with more players entering the space and existing firms expanding their operations. This growth suggests that job opportunities in secondary PE are likely to continue to increase.
Compensation Insights: Based on the most helpful WSO content, compensation in the secondary market can vary. For example, associates at Alpinvest have been reported to pull around ~$250k. At the VP level, the cash compensation might be in the ~$400k range, with senior associates around $400k and VPs possibly between $500-600k. Directors could be looking at even higher numbers.
Comparison with Traditional PE: When it comes to comparing secondary PE compensation with traditional PE at major firms (MF), the total compensation might be somewhat lower in secondaries. This is partly due to the fee structure in secondaries, which can affect the carry potential. However, the gap might not be as significant at junior levels since cash compensation is often based on management fees.
Specific Firms: For heavy hitters like Blackstone's Strategic Partners or Evercore's PCA team, the compensation details can be a bit opaque. However, some threads have mentioned figures like $600-800k cash comp at the senior VP/director level in secondaries. Carry is less transparent and highly dependent on the firm's structure and success.
Progression: The progression in secondary PE firms is similar to traditional PE, with professionals moving from associate to VP, then to principal and potentially partner. However, the exact trajectory can vary based on the firm's size, structure, and performance.
Remember, these numbers are not set in stone and can fluctuate based on market conditions, individual performance, and the specific dynamics of each firm. Keep in mind that while compensation is a significant factor, the culture, work-life balance, and professional growth opportunities also play a crucial role in your career journey. Swing by the forums for the latest chatter and always keep your bananas... I mean, your options open!
Sources: Secondaries Comp / Culture in 2023, Secondaries/Coinvestment Compensation, PE Secondaries / Co-invest comp? (Alpinvest, Blackstone, etc)
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