Fellow Monkeys,
I could use some feedback from any mid-level PE professionals on here regarding what should be appropriate or typical compensation for someone at my level as I am evaluating moving firms due to what I perceive as lower than typical compensation (wont disclose yet so as not to introduce anchoring bias).
Background
- Recently promoted to VP at a c. $1bn fund
- Have originated 2 closed transactions
- 1 transaction I brought in is expected to exit this year for $30-40 million gross profit
- The other originated transaction is underwritten for $50 million gross profit
- Handle underwriting various other growth equity and buyout transactions and managing investments
Questions
- How much do you think I should make in base, bonus, and carry (please quote carry in terms of dollars at work since %'s can mean different things depending on AUM)
- Do you think it makes sense to go to a smaller group where I can get more of the carry pool, or go to some of the bigger name players in my space?
This varies by geography as well as vertical focus, but in my opinion cash comp should be $300k+ and carry should be $1MM+.
Helpful feedback thank you. For some additional color I operate in NY primarily focused on software investments. (some services)
Got it. Based on your location and vertical I would say you should definitely be in that ballpark even as a very junior VP. If not, maybe try to renegotiate if you like everything else.
Is this total carry at work or annualized number?
Total carry at work. No way the average is $1mm p.a. For VPs lol
$325-400k cash comp all in with 50-75 bps of carry (some newer funds or very aggressive places will give 100 bps). I am not uncertain that is what your peers make at similar sized software growth shops.
Thank you!
this just reaffirmed why GE is so cool. OP can you talk about how you broke in?
I worked in private credit and had some software oriented experience which enabled me to speak to typical KPIs like retention metrics, LTV/CAC, runoff scenarios, etc. I also had a strong referral which helped expedite approval to hire me. I think anyone with an investment banking or principal investment background can get their foot in the door as long as you can speak authentically to how you think about evaluating companies.
What do you mean by runoff scenarios?
Can anyone shed some light on VP/Principal comp at good GE shops in London?
Dumb question...when you say closed. Like you were able to originate/buy-into the firm and then later on the year already exit on the strategy for the firm? Just thought most PE deals take multitude of years to play out, the SaaS world guess gives opportunities for this?
It would be about a 1.5 year hold which is certainly anomalous, but we got in at a really good valuation during the covid panic and now SAAS valuations are extraordinarily high so the board all agreed to engage a banker to sell the company. It was a good deal originally underwritten to the typical 5 year hold, but the market environment is what is compelling the earlier than expected exit.
Thanks for informative response. Hope they take care of you seems like a great career path you taken.
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