Midlevels - how is your fund shaking out for 2023/4 Comp?
Title is the question and mostly targeted to post-MBAs
1) How are people shaking out in terms of cash comp (base, bonus, carry) for post-MBA roles? (say VP1 is first year post MBA, VP2 is second, etc.)
2) What sorts of titles are people getting? Are you a VP, Principal, or Senior Associate? What's the promotion timelines in between, and if you're a Senior Associate, is the expectation you'll be promoted to VP or Principal within X years?
3) Anecdotally, how many VPs do you have in your fund (and approx fund size)?
4) Are you guys hiring any post-MBAs from business school or laterally at the moment?
Following
Bump
following
$800M fund size / $2B AUM with 5 VPs. We like to do things by 60s lol
SR ASO 1: $300k
SR ASO 2: $360k
SR ASO 3 / VP1 (mid-year promote): $420k
VP2: $480k
VP3: $540k
VP4 / Principal 1 (mid-year promote): $600k
Roughly $1M DAW as a SR ASO, $2.5M as a VP. Haven't been told what principal is yet
Thanks - very helpful. Any chance you could clarify if your fund is in a HCOL/High-Tax Metro or elsewhere?
Yes, NYC
Seems pretty solid for a sub $1bn fund
Thanks for the info — Do you have any visibility into carry materialization? Thanks.
Visibility yes, actual realization no. We're prepping to launch sales of two of the first deals where I had carry in Q1 of this upcoming year, so hopefully something in the bank by late summer or so. I've gotten a few sale bonuses for exits where I didn't have a direct stake though.
Out of curiosity what is your industry focus and is this majority base weighted or more of a 50/50? Weighing up an offer at a similar size fund so very helpful
The answer to your question is that it is all over the place. There are a handful of opportunities floating around at the VP level (reputable funds) that pretty much any qualified person looking for a job should know about (headhunters running processes). From my limited MBA recruiting knowledge, there is still very little MBA recruiting going on right now. Somewhat makes sense — lots of experienced VPs are currently looking to lateral and willing to step back to a VP1 title. Interestingly enough, not a lot of experienced VPs with substantial closed deal experience … similar to what we dealt with in 2009 / 2010, the people who remained employed through that period were lucky to get one platform done when the M&A market stalled.
Private credit - 3rd / 4th year VP - 800k total comp give or take, no carry, usa but not nyc, sf, la, or Chicago
Not sure why this got MS. Comp (base + bonus) definitely seems a bit high but certainly not absurd given no carry at work. I’ve heard of some PC firms that comp fairly well.
What is aum and strategy, deal size? Trying to get ammo for my own discussions. Thanks
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