Texas-Based Energy PE Compensation at VP Level
I'm looking to lateral back to Texas (where I did my IB analyst stint) from the energy vertical group within a larger PE platform and am currently based in the Northeast. Unfortunately, none of my fellow former analyst/IB colleagues and contacts have a ton of first-hand knowledge on what the traditional Texas-based energy PE funds are paying at the VP level. I've tried asking some headhunters but the amount of updated, post-Covid, data seems sparse given that a few of these firms don't seem to consistently use recruiters. I've received some data points from the peak Shale era days of the mid-2010s which I don't believe to be as applicable in today's climate.
Does anyone have a sense of what Quantum, EnCap, NGP, etc. are paying in terms of cash and rough carry amounts at the VP level? Distinguishing between VP1 and "experienced VP" would be helpful as well.
Don’t know those firms specifically but I think around $500-700k all in cash comp plus $3-5mm of carry DAW seems about right
Thanks - are you basing that view off of your intel for comp ranges at similar fund sizes ($5-$10 Bn) in general? There might be a decent chance that a few of the examples I named in my original post might fall a little short of $5 Bn on their current raises depending on how the fundraising climate plays out over the next year.
For what it's worth, I'm currently at a firm comparable to ECP/Riverstone/Oaktree and recently was promoted to VP and guided to the low end of that range on cash comp and DAW while living in an HCOL area.
That was based on intel from smaller funds but still with B’s instead of mm in terms of fund size and AUM. And in LCOL cities in TX (ex Austin). Would say that range I quoted is from starting VP to almost Principal/Director. So if you’re getting guided to lower end that tracks, plus you would be in LCOL city
Got it - thank you. Thanks for the context.
Not joining one of the big funds you refer to but am very familiar (am at a portco of one you mention), and am joining a smaller fund at the senior associate / AVP level early next year. Comp for my role is ~$250 all in (cash, bonus, and RSU in public vehicle) and when they raise their next fund I'll have the option to co-invest at GP economics.
Thanks for your reply and congrats on landing the new role. Those numbers seem very reasonable and it looks like you have some attractive upside with your ability to co-invest. Looking back through my old email chains, I'll go ahead and add another data point as well.
Had a recruiter inbound for a lateral Senior Associate role in 2021 at a $500 MM - $1 Bn fund focused on midstream and based in HOU/DFW. Total comp guidance was $145k Base and "up to" a $145k Bonus (top end of the range) with no other upside / co-invest rights, etc.
Which LMM-MM energy focused funds are still out there? Seems to have been a lot fall off. Any sense for which ones stand out and which ones aren’t so great from the ones that are left
Carnelian has had good returns in their first three funds and closed on their fourth fund last year for <$1b. One of the better players out there, compared to the larger firms (EnCap, Quantum, NGP).
Pearl in Dallas also raised a fund recently. Quantum is UMM by Energy PE standards and have had good traction on their current raise.
Curious to hear if anyone else is aware of helpful data points.
Received a new data point. ~$1 Bn energy fund based in Houston/Dallas. VP1 cash comp guidance of $400k-$450k with carry (did not specify how much) and option to co-invest on a deal by deal basis.
OP here - bumping this again to see if anyone else might have some input. I have a few intro meetings coming up and have already started having dialogue on an informal basis with a few others. I'm not going through any headhunters right now which makes the conversation around compensation more awkward at this stage.
Unfortunately don’t have real recent insight but 5-7 years ago when I was closer to the space, NGP, EnCap, Riverstone, and the energy MFs (Apollo, Warburg, KKR) paid in line with large cap street. Quantum was known to be notoriously stingy with comp but may have increased as they’ve gotten so much bigger. The other MM funds (Carnelian, Pearl, Tailwater, etc.) probably pay in line with other MM funds (ie a marked discount to large cap funds). Not energy, but have heard that Sterling in Houston pays much more than you’d expect at their size.
At the firm I work for, my VP is paid all in cash comp of around $300k with co-invest opportunities
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