Traditional PE to Co-Invest compensation
I'm currently an associate at a traditional PE fund and currently entertaining an opportunity at a co-investment shop for a Sr. associate/VP level. I've had several conversations with the team about role and expectations, which has been made clear; however, comp has not been discussed yet aside from it being "market". Does anyone know what Market is for a senior associate role on a co-investment team. FWIW, this shop has a few strategies - primaries, secondaries, credit, etc.
Any info on comp at the co-investment level willbe appreciated.
Background. I thought traditional PE would be my long term path but a few things have happened personally and am looking for something with a better WLB and would allow me to spend more time with family and love ones.
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Depends on size / scale. I think ~$300-400k is probably right at the Sr. Associate level, but have seen lower ($250k) at smaller firms.
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I made the same switch from PE associate to an associate in a Co-invest / primaries / secondaries role. Been super happy with the switch and found that the comp was almost on par (virtually no discount, though the PE fund I was previously at might have been paying on the lower side). Work life balance has been substantially better and I feel so happy I made the move. I was nervous to make the switch, but I spoke to so many people who were also getting burnt out on the direct PE side which solidified my decision. As long as the co-invest fund has a good name and reputation, I would feel confident in the move.
What's market comp for associate roles at a primaries/secondaries/co-invest shop?
Secondaries/Co-invest teams I've seen anywhere between 225k-300k all-in Asso 1
Any idea on typical VP+ cash comp and carry? Trying to get an understanding of the usual discount between co-invest and buyout roles as you move up the ladder.
Have seen ~$375k cash comp for VP1 as a data point. I think carry can be pretty hard to standardize given co-invest roles directly under a pension fund are not going to be paying anything like a FoF. Based on what I've seen, DAW are not too dissimilar from a LMM/MM PE shop at the more established shops.
OP Here
Thanks for all of the color on comp. It doesn't seem like the discount is too drastic, I was certainly expecting a greater discount. I am totally okay with taking a step back from the traditional PE diligence process and managing multiple work streams with third party providers to something that appears to be less stressful and still good comp with better WLB.
In addition to comp, if anyone has any experience they would like to share, please do drop them in the comments. Would love to hear everyone's experience who have made the jump or those who are looking to go the opposite, co-investment to direct.
I would just caveat that WLB will vary drastically by firm. For instance, I've heard that AlpInvest can be pretty sweaty (probably more in-line with regular MM PE hours), while my co-invest team is probably working 50-60hrs a week.
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