Salary bump with fundraise
I joined my firm a few months back, and we are going to go to market soon for a new, larger fund. My recruiter during the process mentioned an opportunity for comp to grow meaningfully over time given the larger fund - has anyone previously received a mid year base salary bump or a higher year end bonus based on the close of a new fund? Or has the jump occurred after 1 year or when promo to senior asso comes? My offer was negotiated with a target all in comp number but just wondering if possible I get bumped up.
I wouldn’t expect anything until your firm’s standard year-end bonus or promotion cycle at the earliest—more likely, you’d see an adjustment at an actual promotion. This all assumes the fund reaches a first close and is meaningfully larger.
From the firm’s perspective, a bigger fund doesn’t necessarily mean they’re getting more coverage out of you. They’re often better off hiring additional bodies rather than giving across-the-board raises with the additional fees. The exception would be if compensation has been below market, and there was an implicit handshake deal—where leadership signaled that sticking through the fundraising period at lower pay would be rewarded once there’s more visibility into the new fee structure.
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