What are real MM PE pay now? Is it still worth going to MM PE, if you're getting paid ~$300k at a decent IB?
What are real MM PE pay now? Is it still worth going to MM PE, if you're getting paid ~$300k at a decent IB?
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Going to MM PE isnt about the instant pay bump in comparison to IBD. Most likely, you will take a haircut in pay, but those going to MM are ok with that. MM is more about lifestyle, the smaller revenue range of companies you get to focus on, as well as the potential for more responsibility and a non-MBA promotion going forward.
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Very, very few associates get carry and if they do it's not meaningful dollars.
What to expect now for MM PE associate and senior associate pay? If I'm currently at a mid tier MM IB as associate, is it still worth it for me to go MM PE route? And, how much is the hours better than IB? On average I work 70-80 hours.
Hours not necessarily better. In some cases worse. Really firm dependent. Have to do your DD.
Going from IB to PE has never been about the near-term pay… there have always been a handful of shops paying above banking comp but by and large PE (especially MM/LMM PE) has generally always paid less at the junior level.
You do PE because you want to be on the buy side making a career as an investor rather than a salesperson, and you do MM/LMM because you want career-track positions, smaller companies, and faster promotions/carry (if you’re lucky). If you make it to the senior levels and get carry and the fund performs and you stay long enough to vest, then the comp (esp. after-tax) can be significantly higher than banking (though plenty of rainmaking MDs outstrip people at average performing funds), but that’s a huge number of ifs and years in the future.
I can definitely see your point. However, it doesn't seem like a lot of MM PE folks actually end up pursuing long term career in PE as well. I see a lot actually just move to startup or corporate. On the other hand, I actually see more MDs at BB move to PE as MD/Partners. I don't know if my observation have been heavily skewed given the small sample I'm looking at. Especially, if I want to move to corporate I don't see how BB IB experience differs from PE that much.
I think someone in PE (MM or otherwise) is more likely to stay in PE than someone in banking (MD or otherwise).
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