Secondaries PE Comp – Base, Bonus, and Carry

Hi Monkeys, 

Given all the buzz around Secondaries on the forum lately, it’s surprising there’s no consensus or clear data on comp for these roles. I never knew much about the space and confused it with vanilla FoF, but am now looking at it as a legitimate potential exit. Hoping to gather some insights to help paint a better picture.

If you have some data, please report :

  1. Title & Year of Comp Data: (e.g., Analyst 2023, Associate 2021, VP 2024, etc.)
  2. Base: $
  3. Bonus: % of base or $
  4. Carry: DAW, Structure etc. 

Would appreciate any datapoints—whether from GP Led, LP/GP split, even secondaries advisory — to get a clearer view of the landscape. Thanks - hopefully this can shed light on the space.  

35 Comments
 

Based on the most helpful WSO content, here’s a breakdown of Secondaries PE compensation insights:

  1. Base Salary:

    • Associates at top 15 shops can expect base salaries in the low $100k range.
    • Senior Associates see a bump, with base salaries typically in the mid-$100k range.
    • VPs generally have base salaries between $150k and $200k.
  2. Bonus:

    • Total compensation for Associates ranges from high $100k to low $200k, indicating bonuses can be significant.
    • Senior Associates' total comp typically falls in the mid-$200k to high-$200k range.
    • VPs' total comp ranges from $350k to $500k+.
  3. Carry:

    • Carry structures in Secondaries tend to be less lucrative compared to direct PE due to lower carried interest fees (10-12.5% vs. 20% in direct PE).
    • However, some firms, like Partners Group, introduce equity components early in one’s career, which can offset lower cash comp.
  4. Work-Life Balance:

    • Secondaries PE is often noted for better work-life balance compared to direct PE, with partners typically working fewer than 50 hours a week.

For more detailed data, you can explore the WSO thread on Secondaries compensation here: https://www.wallstreetoasis.com/forum/private-equity/data-average-priva…</a">Secondaries/Coinvestment Compensation.

Sources: Data: Average Private Equity Compensation and Carry from Associate to Managing Partner, Secondaries Comp / Culture in 2023, Data: Average Private Equity Compensation and Carry from Associate to Managing Partner, Secondaries/Coinvestment Compensation, From Private Equity Associate to VP in Private Equity

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

That’s carry you received as an associate? What do you expect cash TC to be?

 

really? I would have thought that's low. What would you expect a VP1 in secondaries to be making?

Still feel underpaid given that associates at banks have higher base salaries than I do though... 

Good WLB IMO. I can really manage expectations at this point given that I've been here a while and know what needs to be done. Of course, if we're going to IC, writing the memo can mean longer hours but only going to final IC 2-4 times a year

 

I made 230k TC as an AN3 last year with base bump to 175k as an AS1 and expecting min $300k TC but I’m sure it could be higher since things are going well. I’m not even at one of the top shops where comp is most certainly higher (for a meaningful hit to WLB). It seems like the only places that meet / exceed these numbers are the MFs. For VPs it’s pretty much just M&A comp assuming your at a shop that performs… not to mention people getting guarantees with the fight for talent.

Have been in some process and spoken to recruiters for non-MF shops and TC target for AS1 has been in the 175k-225k range which is a hard haircut to stomach… maybe with a few bps of carry it’s worth it but not many shops offer that.

 

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