1st Year Mega Fund (MF) Associate Compensation

abc50's picture
Rank: Senior Chimp | 20

Hi,

I've heard various numbers thrown around for all-in first-year associate compensation at a Mega-Fund like KKR, TPG, Silver Lake, or Apollo. I've heard anything from $250K to $400K. Can anyone help me pinpoint a realistic expectation?

Thanks!

Starting Salary for PE Analysts

While the starting salary varies from firm to firm, mega fund associates can expect to make between $200 k - $300 k.

Madden_Arps - Private Equity Vice President:

This is for Summer 2013 Starts:

  • Apollo: $140k base + $125k stub
  • Bain: $115k base + $175k full year
  • Carlyle: $105k base + $175k
  • KKR: $100k base + $175k
  • TPG: $110k base + $70k stub
  • Warburg Pincus: $125k base + $125k

User @big unit, a private equity analyst, shared what the overall compensation will be for associates over 2 years working there:

big unit - Private Equity Analyst:

Over the two years in a standard associate program at a MF (after completing 2-3 years of investment banking), you can expect a range of $600-$750 total comp over that time. Bases range from $100k to $150k.

2018 Private Equity Salary and Bonus

Check out the Wall Street Oasis 2018 Private Equity Salary Guide for a more updated salary overview for the PE industry.

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Comments (34)

Nov 24, 2013

I saw someone in here (on an MBA offers thread) say they are going to D.E. Shaw post-MBA with a guaranteed base of $400,000 and I believe (could be wrong here) a bonus of 100-500% of base. That being said, I'm that's the exception rather than the rule.

    • 1
Dec 19, 2013
notthehospitalER:

I saw someone in here (on an MBA offers thread) say they are going to D.E. Shaw post-MBA with a guaranteed base of $400,000 and I believe (could be wrong here) a bonus of 100-500% of base. That being said, I'm that's the exception rather than the rule.

lol you got trolled hard...

    • 2
Nov 24, 2013

Those numbers are legitimate. Apollo, on the high end, pays ~$400k. Most others are closer to $275k.

Nov 24, 2013

280 - 400+ is the widest range I've heard for MFs

Nov 24, 2013

About 300k, Apollo pays more like others have said.

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Best Response
Nov 24, 2013

This is for Summer 2013 Starts:

Apollo: $140k base + $125k stub
Bain: $115k base + $175k full year
Carlyle: $105k base + $175k
KKR: $100k base + $175k
TPG: $110k base + $70k stub
Warburg Pincus: $125k base + $125k

    • 6
Nov 24, 2013
Slash-Finance:

This is for Summer 2013 Starts:

Apollo: $140k base + $125k stub

Bain: $115k base + $175k full year

Carlyle: $105k base + $175k

KKR: $100k base + $175k

TPG: $110k base + $70k stub

Warburg Pincus: $125k base + $125k

Can you explain the stub? Is it for July - Dec?

Is 140k + 125 stub comparable to 140k + 250k full year?

Nov 28, 2013
parvenu:
Slash-Finance:

This is for Summer 2013 Starts:

Apollo: $140k base + $125k stub

Bain: $115k base + $175k full year

Carlyle: $105k base + $175k

KKR: $100k base + $175k

TPG: $110k base + $70k stub

Warburg Pincus: $125k base + $125k

Can you explain the stub? Is it for July - Dec?

Is 140k + 125 stub comparable to 140k + 250k full year?

Apollo pays first year associates $390k?? fuck me...how do I get a job there

Nov 24, 2013
Slash-Finance:

This is for Summer 2013 Starts:

Apollo: $140k base + $125k stub

Bain: $115k base + $175k full year

Carlyle: $105k base + $175k

KKR: $100k base + $175k

TPG: $110k base + $70k stub

Warburg Pincus: $125k base + $125k

Is TPG meant to be 70k or is there a 1 missing?

Nov 24, 2013
Black Jack:
Slash-Finance:

This is for Summer 2013 Starts:

Apollo: $140k base + $125k stub

Bain: $115k base + $175k full year

Carlyle: $105k base + $175k

KKR: $100k base + $175k

TPG: $110k base + $70k stub

Warburg Pincus: $125k base + $125k

Is TPG meant to be 70k or is there a 1 missing?

It says stub, which I assume means the 70k is from summer to year end 2013. So it's probably like a 140k annual bonus.

Apollo definitely does the stub thing because it's not a two year program, but I'm surprised TPG does that.

Nov 24, 2013

70k stub means you get 70k after 6 months to normalize you to a year-end schedule since you start in the summer - so 140k pro-rated in TPG's case assuming those numbers are correct

most of these places do the same thing regarding stubs, even some of the ones that don't have a stub noted on that list, and in most cases, first years all get the same bonus since it's too soon to really base things on performance at that point

    • 1
Nov 29, 2013

xx

Nov 26, 2013

What's the rationale for Apollo and tpg doing stub bonuses if the associates leave in the summer anyways?

Dec 18, 2013

Over the two years in a standard associate program at a MF (after completing 2-3 years of investment banking), you can expect a range of $600-$750 total comp over that time. Bases range from $100k to $150k.

Dec 19, 2013
big unit:

Over the two years in a standard associate program at a MF (after completing 2-3 years of investment banking), you can expect a range of $600-$750 total comp over that time. Bases range from $100k to $150k.

How about upper MM firms with $3~10B aum?

Dec 19, 2013

Not sure. I don't usually think of firms in terms of AUM, but rather in terms of name. Most of my friends who did their 2 years in M&A or LevFin and then moved to other good PE shops are probably in the $450-$550 range over their 2 year associate stint...though some are in less structured programs and a lot stayed on as 3rd year associates.

Dec 19, 2013

I've put this on a couple threads but in case it helps, here you go:

2012-2013 Holt - Thomson Reuters Private Equity and Venture Capital Compensation Report:
http://career.chicagobooth.edu/fulltime/docs/2012-...

What you're looking for:
Large LBO/Growth Equity
Associate
Salary 50%: $125K
Salary + Bonus 50%: $200K
Salary + Bonus + carry 50%: $210K

The mean obviously skews higher than the median numbers above.

Dec 20, 2013

TheBigBambino - is this stating that the average post-MBA assocaite at a PE shop makes $200k-$210k...doesn't that seem low?

Dec 20, 2013

Hey @big unit - I believe that would be for a pre-MBA associate, which falls in line with a few PE associates I know that just left banking. Most fall in the $115K-$125K base + 100% bonus potential.

From numbers I've heard around my network, I'd assume a post-MBA Mega Fund salary would be something on pages 67 or 69 of the report (senior associate / VP comp).

For those the all in 50% comp at a large LBO shop is between $303K - $476K

One thing no one here seems to be talking about and that report don't discuss is co-investment ability. A good friend of mine had a basic associate comp but had a $200K line of credit from the fund to co-invest in deals. He put $25K-$50K into each deal he worked on at little cost (just the interest on the LOC). Well, he doesn't even work there anymore and one of his $50K co-investments just got acquired for a 5X! Talk about a nice Christmas bonus for a from a firm you left over a year ago...

Dec 22, 2013

How does this coinvestment work? Is the loan recourse only to the equity? Or you have personal liability? And is it a loan to lever some of your own money or is it not required for you to put your money on the line and just have to fund the interest.

Dec 20, 2013

Nice, thanks for sharing this - quite the treasure trove of data. I guess the numbers make sense, especially when considering the selection bias in the numbers kids see coming from BBs

Dec 21, 2013

You should expect >$600k over 2 years as a pre-MBA associate at a MF. It's very likely that the report posted above doesn't include any of the MFs and as such provides a sample heavily skewed towards MM funds.

Firstly, the "partial" list on p.12 doesn't include any megafunds. Secondly, looking at p.15, the LBO/Growth Equity (Large) bucket includes 18 firms. The 75th percentile for overall AUM in that bucket is $3bn and for the latest fund it's $1bn, so there's max 5 LBO firms included in the entire report investing out of funds larger than $1bn or with overall AUM >$3bn. The average AUM is $2.2bn, so the total across all of them is around $40bn. I'm not aware of any megafunds with AUM below $15bn, so the average should be a lot higher if any of them were included. Same thing with the latest fund size (total sample of $17bn when most MFs have funds >$10bn).

Also, the associate numbers are post-MBA, so you should instead be looking at the senior analyst numbers as per p.65. Based on p.73, these are:
$90-100k Base
$150-175k Base+bonus
$150-195k Base+bonus+carry

I think this is on the low-end even for a MM fund, but it might just be because HIG is included. Those guys work on minimum wage.

Mar 2, 2014

-

Dec 22, 2013

.

Mar 2, 2014

If the glove don't fit, you must acquit!

Mar 2, 2014
WalMartShopper:

http://www.glassdoor.com/Salary/The-Blackstone-Gro...

These numbers seem a bit low...no?

Mar 2, 2014

Good find. Thx.

Analyst salary is quite low - there's a big gap between analyst and associate. Is this indicative of PE?

Mar 2, 2014
highlylevered88:

Anyone know what megafunds (BX, TPG, Bain, Providence, Carlyle, etc) are paying this recruiting cycle for incoming Associate hires?

definitely some recent compensation data for these firms in our Company Database.

Mar 2, 2014
WallStreetOasis.com:
highlylevered88:

Anyone know what megafunds (BX, TPG, Bain, Providence, Carlyle, etc) are paying this recruiting cycle for incoming Associate hires?

definitely some recent compensation data for these firms in our Company Database.

^best answer, the database has company, salary, interview, etc info and it's ALL new (2011+)

If the glove don't fit, you must acquit!

Mar 2, 2014

Thanks a lot

Feb 26, 2014

Any idea what apax or ta pay?

dollas

Mar 2, 2014
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