VC comp at top funds
What is post pre-MBA top tech IB -> top VC comp at funds like IVP/Sequoia/Bessemer? How does comp compare to GE and MM/MF PE ?
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VC comp is far lower than what one would get in PE. PE also comes with a more diverse set of exit opps. Much easier to do PE -> VC than the other way around. Don't recommend joining VC unless you're joining as a Partner.
Why did this get MS? This is 100% right.
Thanks for the jargon. This was such bad trolling even I'm annoyed.
350k-400k base + carry as a GP at top firms generally speaking.
I'm guessing the other response got MS because there's a bit of a PE>>>>>>VC circlejerk on WSO. When it comes to top firms, the base salary at the partner level are more or less similar. The VC funds that perform at the tippy top level have ~40% IRR by the time they're winding down so comp from carry doesn't suffer much either compared to well-performing PE funds.
That said, VC comp industry-wide is generally lower than PE since there are a lot of crummy VC funds out there, and it's true that juniors in VC are paid less than their counterparts in PE.
I personally don't think people should subscribe to entering a field for prestige or marginally higher pay. Just go into the field you're passionate about, get good at what you enjoy doing, and the money will follow.
Did a summer at a top VC firm so can provide some actual data- VC comp is 100% lower than PE at the junior level. GE is typically somewhere between the two, but it can be more firm dependent. On the other hand, VC work life balance is insanely better (at least at the firm I was at)- even the analysts/associates were usually working 50 hour weeks, and I don't think anyone at the firm ever hit anything close to an 80 hour week. There were people at the firm that came from top IB shops (MS, EVR, etc) and one of them mentioned they actually took a pay cut going to the VC firm after their 2 year analyst stint.
At the top level, you will make a shit load of money if you are good in VC/GE/PE. Which one makes more is irrelevant, because a good partner at any of these makes phenomenal comp. That being said, I think being a successful VC partner is a bit harder (not going to argue whether it is more about luck vs skill, but there's just more unknowns with early stage companies vs an LBO where you can ensure pretty solid returns). Being a VC partner is probably a little less reliable, because the 2% fee of a VC firm with ~1B fund vs the 2% fee of a PE firm with a ~10B fund means that the VC fund needs a bigger return to make the same amount solely off of the fund size.