Why does PE in Canada pay so low?
Outside of Onex and Altas, the private equity firms in Canada pay poorly compared to any comparable U.S. Funds where associates make $210-230k Canadian at a Birch Hill/TorQuest/ Imperial where direct comps at a similar fund size in the US would comp USD $275k+ and the smaller funds pay even worse. Looking for any thoughts and disclosure to improve transparency.
In Montreal you can get CAD250k all in as an associate in the biggest funds. It is lower than HCOL cities but Montreal COL is still relatively low compared to other tier 1 even tier 2 cities in NAM. There is a variance at junior levels but once you reach VP (at least where I work) comp is close to HCOL cities: USD600-700k for a director year 1. Work life balance is top notch though
Firm?
Probably Novacap.
I assume there are some optics involved at the pensions. Like it probably wouldn't play well to have baller comp on the teachers or military pensions.
Comp still good over there considering they're working 9-6 with a few extra hours here and there call it 50 on a normal week. Friday pm off during summer, insane paternity leave and a lot more perks. They used to have a defined benefit pension for employees that got hired pre ~2015. Senior Directors start at CAD650k-750k based on annual performance (but 40% of bonus is locked 3y)
Yeah it sounds like a good life tbh, I can see why the discount vs. US comp.
I think Canadian firms outside of Altas and Onex have a much better W/L balance to be fair. Not as much work on the weekends typically and hours seem to be more manageable
Because they can. There are so few legitimate buyside seats that it allows these funds to pay a material discount to a banking role, which is why people will remain on the sellside. Sure WLB is better, but if you want to do investing work you’re going to get hit with a hammer on comp.
This continues as you go up, with Canadian firms being beyond stingy when it comes to carry and churning associates out while keeping a roster of old dudes at the top. Altas has a pretty bad churn rate of Associates.
As a side note, I didn’t know Imperial paid in line with BH / TQ
Only the US pays a lot more really to be fair.
Canada is tough b/c we bleed so much good high tier talent to the US...so firms can't really scale.
I think its the opposite
Sorry, my point was that anyone AMAZING will leave and go to the US or start a firm in the US.
So there's way less competition up here for talent.
It's just like tech and other industries unfortunately...
Our government isn't helping lol
Cause it’s a frozen wasteland that is only running on oil and real estate.
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