Post MBA comp 2022/2023 update
There have been massive changes in the last 3 years so can we please get some clear numbers on VP1? Please post anonymously with fund size. My understanding is:
MF: 600-700 and 4-6m of carry is the range UMM is maybe 100k discount I think?
Also what’s the annual scaling and years to principal promotion?
Thanks
Lmao this shit reads so much like a VP post “let’s be crystal clear with these numbers”; “think there might be some noise in this data, can we scrub through and make sure we’re apples-to-apples”; 4 questions with responses to his own questions. Don’t worry about first year comp my friend, you’ll do great.
There was a pretty big thread on this recently
Too high.
In LMM, Sub $500m funds for VP1 should be ~$350-400 cash (maybe slightly higher given everything the last year) and $1.0-1.5m carry DAW.
Edit: Source - reputable recruiters and VP's at other funds. Largely for Tier 2 cities.
At that size I’ve seen closer to $300k cash, but made up for it with $2-3mm carry
This is for the first year post-MBA role? Depending on firm, post-MBA associate / sr associate / VP / principal? if so, these numbers are wild...
Check out the Heidrick & Struggles report. I don't think there's much reason to believe 2022 will be materially different from 2021.
https://www.heidrick.com/en/insights/compensation-trends/2022_north_ame…
I talked to a bunch of recruiters about this around this time last year, mainly more for MM firms, so I have a rough sense of where things are. Again this is all anecdotal, but its coming from verifiable sources. I think this is a classic case of WSO over-inflating comp. Yes, I'm sure there are some folks out there at big funds making $700k cash plus carry as a VP1, but that is the exception not the norm in my experience. Even at a UMM or top fund, I'd think that around the $500k mark for cash is a solid watermark with a few million in carry. Realistically, somewhere around $400k cash is probably where most MM firms will end up and that's assuming your'e in a tier 1 city.
In non NY/SF cities, I think 300-400k cash is much more reasonable. PE salary bumps are always slow to follow banking and given where the economy is now, I think firms likely haven't adjusted quite as much or quite as quickly as folks think. If you went to your partner and said, hey, VPs at xyz BB bank are making $700k cash now, that's what you need to pay me, I'm sure they'd be happy to show you the door. As far as carry goes, it ranges all over but I think anywhere between $1-4M in carry dollars at work makes sense, probably $2-3M with decent fund performance over 10 years is how I would think about it. $5M feels like a lot, but maybe that's what they're paying at top MFs now.
Again this all assumes newly minted VP1s or post-MBA VP types of roles, 4-6 years of experience.
Edit: Last thing I'll add, if you really want decent comp figures and are actually in the industry, just call up a recruiter or schedule time to get in touch with them, give them an update on what you're thinking about (whether you're actually looking to leave or not) and then ask about where the comp ranges are. Always boggles my mind that folks spend so much time trying to figure it out via WSO. Getting accurate comp, especially in not tier 1 cities or for more niche funds, is a great use case for recruiters and gives you a good reason to get back in touch with them.
Thanks for sharing! Some more data points, all VP1. Lines up.
MF PE NY/SF ($10Bn+): ~$550k cash, ~$4MM carry DAW
UMM PE NY/SF (~$5Bn): $500k cash, $3MM carry DAW
LMM PE Boston / Chicago (~$500M): $450k cash, $3MM carry DAW
MF Growth Equity NY/SF (~$3Bn): $450k cash, ~$4MM carry DAW
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