Considering that HF comp most of the time is more liquid than PE, and for you to truely realize private equity carry gains you have to stay for some time, wouldn't it be safe to say that HF comps would be better considering a lot of IPs end up switching around firms at least a few times, or is that a dumb take?
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Depends on how good your "good" years are at the HF. PE base pay is generally much higher for same experience level and you can for the most part count on your bonus, wheras in HF if you're having to switch firms you're likely taking a 0 bonus that year.
The difference comes in a good HF year when you get an outsized bonus in which case your liquidity would be better than PE.
Yeah but HF has more risks and stress, my male friends in HF are definitely balding more and chubbier than friends at MF PE. But with that said, if one good year can bring you >$2M in bonus then I think that's way more worth than having $300-400K in bonus from PE
I think issue with PE is making partner is incredibly hard in which the carry is somewhat worthless
I think the goal of being in UMM/MF PE is to accumulate and invest the hefty annual bonus so that even if you don't make partner you will still have bank by age 40
But you can do that in any industry. Most firms still charge their employees fees on coinvest. Its like a HF PM can invest in a fund or invest behind search funds, etc
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