Top PE Associate Pay 2023
Private Equity seems to have the highest variance throughout high finance and the lowest amount of visibility (excluding hedge funds)
What can a Megafund Associate expect to bring in vs a MM-UMM as1
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There is pretty high visibility. There is a lot of variation. The below is generally correct.
Certain firms / certain offers: 400-450
MF / UMM: 300-400
MM: 200-300
LMM: 270
Incredibly rare for a first year Associate to get 400-450 outside of Apollo, but rest seems right
Yeah it is exceedingly rare, I do know some at really top UMMs that got crazy packages though. Not me. Fuckers.
Also, the LMM should say 270.
Can confirm MF / UMM numbers (have myself + 6-7 of my ex-IB friends /college buddies) haven't seen anyone pull more than 400k aside from Apollo as someone else mentioned
H&F or Centerbridge?
I think also important to differentiate contract / typical pay vs what people might’ve gotten paid last year.
Typically contracts have a target bonus or a range (or it’s given verbally when you get an offer) - I’d say $320k+ here is really good for a UMM/MF. Have heard of contracts get up to a $350k target at the usual suspects but this is the ceiling of what I’ve seen / heard.
In 2021 there were lots of spot bonuses, random payments, and huge bonuses because every fund had a monster year and everyone worked very hard. It’s common for these UMM/MF to have a target of $330k or whatever and actually pay a bigger bonus to get you to $350-$370 range, and maybe there were some other random retention bonuses too that brought up the total comp number. Wouldn’t anticipate that in the future though, only in great years / very busy years.
Are UMM / MF firms typically willing to match comp? Say you have offer from a competitor or an HF that is willing to pay significantly more (50-100k). Any stories of success with this?
No. It’s all standardized at our levels even through Vp
Ah ok ty
Point of curiosity, would appreciate all insight:
How do you think about a comp package for UMM/MF on the low end of the 300-400 range for cash but with vest-able perks like options/levered co invest/etc.
Does it bump things up a notch?
Personally would prioritize cash at that level given there’s too much uncertainty for longevity at a fund after associate years. If the vesting period was only the 2 years (i.e., a retention tool for associate program), then I’d consider on a case by case basis
UMM Non-NYC: $350 + some other pots of money (good 401k, relo package, etc.) probably worth somewhere in the low 10's p.a.
If you don't mind me asking, what city? SF or CHI?
There are definitely a lot of small variances. For example, there are many firms that have really relaxed lunch / dinner stipends (e.g., unlimited) or YE profit share to your 401k. In a year like 2021, the latter could have been as high as 20-30k. The base comp, co-invest, and bonus are obviously most important, but definitely don’t ignore the other day to day items.
UMM SF
250k all in, 10k co-invest per deal per year, 10k phantom equity per deal per year (cliff vest at 2 years), should net to >400k per year
If you do 4 deals each year (a lot) then that’s 80k*3x (generous assumption) is 240k, so 370 first year and probably around 400k second year. Could easily be fewer than 4 deals in this environment and could easily be lower than 3x.
Not sure that calc is right. the phantom equity will be based on current mark, so 3 x would be a tough assumption.
also the co invest will not vest in 2 years. Likely 5 or more.
francisco partners?
Agreed… Also surely the co-invest does not cliff vest 2 years?
Bump
Heard GIP also pays 350-400k
UMM buyout. bonus range is fairly wide but target is ~300+ all-in in LCOL Tier 2/3 city.
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