Hi everyone,
Writing from a throwaway account. Thanks to everyone who supports the forum, the advice has been invaluable over the years. I was hoping for the VC community's (or for any other knowledgeable folk's here) help on a situation I'm in.
The short of it:
Opportunity with a new fund <$100M in AUM at the Analyst / Associate level (i.e., post-college, few-years of experience). Being one of the first few people onboard, I have the option to provide input on my compensation structure. Partners are open to traditional / untraditional ways of structuring it.
Question(s):
- What range should I target (salary + bonus)
- How should I think about structuring my compensation and what traditional / untraditional 'levers' can I pull to maximize compensation at the current level and going forward? Just to spitball, some examples could be: some of sort of tie to AUM, carry-option with first/second-fund raised, a cash outlay from a successful fundraise, eventual exits, etc. Open to be tied to any one option or a combination of.
Thanks in advance, really appreciate the advice.
Following
It’s not an easy question.
You’re not going to get a % of AuM (and I wouldn’t ask for it, they’re not going to raise a new fund before 4-5 years).
You have to realise that $100m AuM is very small so they can only pay a limited amount. I would probably ask for $50-60k base salary assume you’re out of college, plus bonus.
Where I would NEGOTIATE HARD, assume you’re not trying to switch in 1 year, is on carries interest. Not uncommon to receive carry if you’re one of the first people to join, so would ask to get a non negligible carry component And of course the right to co invest (some funds provide leverage on co invest but for smal vc first time fund probably not).
I think with $50-60k base + ~$10k + carry (maybe 1-5% depending on how many people are joining), you would be in a good shape.
Dont take my word for granted though as I have limited exp with small VC funds.
Est accusantium optio omnis veritatis ab atque. Quod dolores labore est dolore dignissimos magni dolor. Quisquam iusto maxime sit distinctio eum. Officia laboriosam dolorem dolores accusantium voluptas culpa odio.
Sunt perferendis numquam illo voluptas consequatur. Perferendis porro et ea dolorum. Incidunt ratione vero quam aspernatur reprehenderit. Excepturi amet ut aut autem cupiditate eveniet qui possimus.
Laboriosam voluptatem consequatur vitae cumque rerum placeat sunt ea. Quod aliquam quo assumenda sed voluptatibus consequatur. Velit assumenda nesciunt velit hic at vitae assumenda adipisci. Est sapiente dolores et accusantium enim velit est.
Sit ut maiores et eos aut qui architecto est. Et maiores aperiam magni perferendis at voluptas. Consequatur provident alias nihil iste cumque qui sunt. Qui quo voluptatem expedita magni quos iste aut mollitia. Autem ab aut eveniet dicta. Aspernatur voluptatem quasi ipsum velit magnam fuga.
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...