Can anyone share latest comp data points for PE associates in the South / SE regions?
Base / Bonus/ Carry / Fund Size / Hours Worked/ City / State
Trying to gauge if comp has bumped up at all or still lagging
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Likely need to factor in that a states like FL, TX, & many other SE states don’t have state income tax which makes material difference.
True but a car + insurance + parking definitely eats significantly into whatever tax savings you get.
Compared to what? If we’re talking cost of living it’s much lower anyway so the tax savings are real and net right to the bottom line. The cost of living stuff isn’t relevant since if we compare that in tx/fl to ny/ca it’s actually a saving even w having to buy a car
That’s just some BS the partners give to justify paying less.
Exactly, and it’s not like management fees are any lower than somewhere else.
The whole point of moving to a LCOL place is for excess savings and lifestyle, not to live in a shit hole and have parity vs. New York.
In my experience - not a ton of movement on comp. The larger MM TX funds were not too far behind their MM coastal counterparts a couple years ago (still below, but not massively).
They haven’t moved as much in recent years so the gap has widened a bit - I think it will come, but definitely on a lagging basis, which has hurt the net delta as rents have come up a lot in TX and cost of car ownership (prices, gas, insurance) have all gone up, though from what I hear about rent on the coasts they’re getting hit too (and there’s always the tax gap).
TX funds are also a lot less open to WFH / hybrid. I hear a decent number of NYC funds are doing 3/2 setups, but everyone I know in Dallas is in the office 5 days a week
Are we talking about low 200 all in for MM PE in Texas?
How does this progress over time up to senior associate and VP levels?
Thanks in advance
Yep, $225k-$250k is roughly the high end of the range for MM funds in my experience between interviews, friends, and my own paycheck (there aren't really UMM or MF funds, except Vista and Lone Star). Smaller funds more likely to be $175k-$200k, occasionally lower. Senior Associate / VP more like $250k-$350k, with carry kicking in at that point
In terms of 5 days in the office, do people tend to leave early evening and log-in from home? - definitely seen that transition post-COVID on the sell-side.
Feel like 70 hours in the office is different than say 60 in the office and then 10 hours at home in the evening/ weekend.
Very firm dependent. Most in office til ~7 at minimum, some are open to people logging back in at home, others want the actual face time
For a reference point, ~$500m fund in TX. Max cash comp would be $250k but will likely be more like $225k, which I think is going to be about average.
I interviewed solely for TX funds, and as said above all the firms were in 5 days per week for quite some time now. People would definitely look at you strange if you asked to wfh a few days a week and weren’t a partner. In terms of going home to finish up at night, this will probably depend on firm. There’s a handful of people at my firm that like to grind it out at the office and don’t leave at night while a few always leave at 6 and work from home. I will say where I work, there’s definitely an expectation that if you’re working on something collaboratively, like cranking on an ic memo with a VP, then there’s definitely pressure to stay so you can communicate live. It’s dumb, but I will say generally that finance gigs in the south (as someone who worked in banking in the south as well) are a little more old school
So less comp AND more archaic culture?
Bunp
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