Why haven’t PE associate base salaries increased even as IB base salaries have? My MF base salary is even with my 2nd year analyst salary. Even my friends who have higher base comp are only going up to ~$150k which is still not a huge increase over the $125k 2nd year IB salary.
I understand the total comp is much higher, but would be nice to get paid a more steady salary over the year.
| +89 | Nothing to do at work & bored to hell | 9 | 1d |
| +67 | Do people over-index on 'moats' | 22 | 17h |
| +52 | Predicted Net Worth in Trodden Finance Path by 60? | 20 | 1d |
| +44 | Biggest (avoidable) failures in PE Investments? | 25 | 19h |
| +38 | Why is ROIC never really a topic when looking at companies IRL | 11 | 4d |
| +24 | What do you think of PE Value Creation Careers in 2026? | 7 | 31m |
| +19 | Senior IR Lifestyle | 4 | 2h |
| +12 | NY LMM PE Recruiting | 3 | 1d |
| +12 | Honest opinions needed about lateraling | 4 | 2d |
| +12 | How to approach Buyside Recruiting | 3 | 5d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
I’m at a mm with 175 base 🤷♂️
which fund?
what's TC compared to AS1 in IB?
Average TC for MF asso 1 is ~$340k (confirming from myself but also from one of the HH comp surveys).
No clue what IB asso 1 is given the environment/also varies greatly by bank.
There are funds that pay up to 200k base for first year associates
Which? Why don’t you just share the names if you know
Brookfield, but at the expense of a lower bonus (target $300k cash comp)
MF sitting at 175 right now total comp at around 350-375k
what level associate are you? Associate 3? How many senior associate years after?
VP promote next year after 3 years associate
Simple answer - PE is not as boom and bust as IB. Very long return cycle and not dependent on volume of deals.
IB was unable to keep up with M&A demand in 2021, leading to basically abusing their juniors with workload and people quitting en masse. They were doing anything to hang onto their juniors (free Peloton, anyone?) and were forced to raise salaries to keep people. PE was busy but they are not like IB where they are dependent on doing a certain number of deals for revenue. People were not leaving at the same rates as IB so no need to jack salaries up.
Fast forward to today, IB salaries are sky high with not much work to do, hence large layoffs. PE is less busy of course, but they still have stuff to do. They still pay more than IB in total comp, so why give themselves less flexibility in guaranteeing more of it.
Would you rather make a higher base and lower all in comp? Who cares.
Nvm
Assumenda voluptas hic repudiandae perspiciatis a. Cupiditate qui possimus eius facere voluptas. Inventore velit autem ipsa reprehenderit. Quibusdam quo earum nihil ducimus vel dolor et. Voluptate sunt qui libero natus magni est.
Nihil voluptas omnis fugiat labore vel quia quia. Adipisci maxime consequatur pariatur rem nulla ut id.
Quas ut autem voluptatibus molestiae. Quae facilis ullam exercitationem incidunt eum. Est ut et asperiores excepturi cum ipsum maiores.
In recusandae minus consequuntur reprehenderit. Accusamus aut molestiae corrupti delectus necessitatibus debitis aliquid. Omnis blanditiis laborum maxime ducimus veniam et. Hic nemo aut enim aut temporibus non rerum. Minus assumenda rerum dicta debitis expedita.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...