VP Compensation
This forum has a ton of associate comp data points, but I'm looking for VP1 ones for a lateral switch.
MF/UMM level - I'll start with what I've been quoted.
Fund size: $10bn+
TC: $500-550k (VP1)
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Seems mkt. we are also in the 500-550 range and UMM (11bn+ latest). Should scale in the 50-75k p.a. Range I.e. VP2 in the 600 range and VP3 in the 650-700 range. I’ve seen 600 for VP 1 too scaling to 750 but all in the ballpark.
What is principal comp you have seen?
TS here. Principal (or whatever rung it's called above VP) starts at ~$700k or so based on what I understand. Thereafter it's pretty much unclear to me as it can vary so much.
What's the approx DAW you see at VP1? Was shown ~$3m based on a 2x fund return. No good datapoints on how much it scales at the post-VP rung.
That carry is a bit light id push for 3.5-4. We have a funky structure but are the equivalent of 4m per fund for vps with some high variability.
Breaking down base vs. bonus and specifying carry in bps and approximate fund size would be very helpful!
VP in banking at CVP, but pulled in around 1 million pretax in 2021
How’s it looking this year? 💀
Bonuses come out in December but more or less expecting the same..
At my firm ($10Bn+ UMM):
VP1: ~$625k cash, $4MM carry
P1: ~$800k cash, $8MM carry
this is good #
These are good numbers for sure.. congrats
Do you happen to know if there's variation amongst the VP/Ps at your firm? How's the WLB?
Both top bucket numbers, range is maybe ~$50-75k from top to bottom. WLB is pretty middle of the pack -- at the VP / principal level you aren't doing too much of the heavy lifting day-to-day but there's always sprints when in deal crunch mode where you're pulling late hours take make sure everything gets done. To put actual numbers to it, I'm out of the office by 7 most days and usually spend 30-60 minutes before bed responding to emails, checking work, etc. and maybe a few hours on Sundays just to make sure I'm ready for the week.
The quality of your associate makes a huge difference -- there are some juniors where I'm going to need to check / rebuild the entire model in detail, rewrite major portions of slides, manage all the third party workstreams, do ad hoc analyses, etc. all of which are bad for my WLB while others are much more on top of their stuff and want to take on additional tasks which makes it way better.
what does your coinvest program look like? do you get leverage lines on that too?
I'm in HF so please forgive my ignorance since our comp is much simpler than this.
1. How do people tend to think about total comp in a single year? Do people tend to annualize the carry figure?
2. Is the carry for just the most recent fund? Or is it spread across all funds that are still active?
Thanks!
My wife is in PE, we normally think about it (and get the breakdowns this way) as the expected value over a time period (typically 3-5 years) then annualize that. Her payouts are generally volatile (in timing and amount) since the investments are across several funds (so easier to think about what you expect to get, at standard performance, over a few years).
As for what fund the carry is in, when she joined she was given carry across several active funds. Her ongoing carry awards are similarly across several funds (including getting carry in new funds when they launch).
dumb ques: are these #s per year? i.e. P2 will get another $8mm carry allocation? if not per year, is it per fund? so that payout is once every 3-4 years?
How many years of PE experience does VP1 and P1 translate into? Is VP1 after 4 years and P1 after 7yrs (of PE, assuming you joined after 2/3yrs of IB)?
Does your carry award (bps) adjust either i) annually or ii) upon promotion, or is title most relevant for carry allocations at start of a new fund?
Generally you don't get more bps unless you get promoted or the firm raises a new fund. As far as how many bps in the new fund, it's usually standardized across titles with consideration towards YoE i.e., if you're a VP about to make principal a year after fundraise, they would hopefully give some consideration towards that.
Which firm you at?
That seems a lot less than what you would make at an EB. What bridges the gap? Carry / coinvest?
Yea in a non record year EB VP1 comp is probably in the 800 range vs 550ish for UMM PE. Then you get 3-4m DAW carry at UMM PE so if you spread that over 5-6 years and discount at 15% and assume all distributions come at the end of 5 years (i.e. divide by 2) then it's 4m / 5-6 / 2 = 330-400k annualized + the 550k. I'll ignore the tax treatment given uncertainty around future tax rates and for conservatism in general.
But if you leave PE after a few years (say 3), you don’t get the carry right?
EB VP1 comp is not $800k. Street was ~$550-$600k last year. Only CVP outperformed.
Bump
Any LMM vp numbers?
Have seen $300K - $350K cash + ~$2M DAW
At a $1bn fund I'd expect something like $400-450k with 1% carry
What about a ~500m fund?
Curious to see what #s would be like at places w/ much more flat structure? Ex. Apollo w/ no VP - just Principal into Partner
Based on everything that’s been said on here, Apollo is not an industry comp… their associates clear $500. Principals likely clear $1mm. Although given they are public likely some portion of that will be in Apollo stock.
Yep even by industry standards, these guys work real hard. There's a clear trade-off you've to make here but of course the brand/comp is tremendous.
Comping to them will just make you feel miserable.
Is a BD (business development) VP1 at a UMM/MF likely to earn $500-600k cash comp also?
Not even close.
What would a BDs cash comp be at that level? I was under the impression that it was quite similar?
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