1st Year Private Equity Associate Compensation Update
Saw that the most recent compensation updates for private equity positions are from 2016 and since then, many investment banks have raised 1st year associates salary base to 125 so just wanted to get an update.
Obviously this number would vary between lower MM, MM, upper MM, and MFs, but would love to have an idea on where things stand. If anyone can give ranges for base / bonus for the fund they are at (does not have to be exact), it would be greatly appreciated going forward. I'm assuming a lot of times, the ranges are correlated with the AUM of the fund.
Also, just curious but do private equity firms help you "prepare" for your business school applications? Obviously there are some great funds like Berkshire Partners, MDP, Bain Capital, GTCR, and a few others that constantly send their associates to HBS / GSB. Do they hire admissions consultants for their associates?
Interested as well.
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It's been awhile since I was a 1st year associate (~5 years) but I was at a MF that paid ~$150k base with a ~80-120% bonus target. I have to imagine that they've upped those numbers since I was there.
I didn't go the business school route but the firm was willing to reimburse the cost of GMAT prep/admissions consultants up to a certain amount. More importantly, the firm cultivated strong relationships with the dean of admissions at HBS/GSB. They would usually come in at least once a year to speak to the associates.
Talk about executive treatment.. Jeez.
This is helpful. Was your base on the high end of the MF range at the time? Also, did you HR let you know about the bonus target when you received the offer?
I know a couple of friends that have megafund offers that are still getting around the same range as a 1st year associate. Most associates at BB start at ~125K.
That makes sense that the firm had strong relationships. I'm sure that helps with the pipeline.
It was on the higher end but not one of the highest. Yes, they were explicit about bonus expectations.
You said you didn't go the business school route, how did you climb the ladder then? Moved to a small fund as a Principal? Stayed at your MF?
Went to another firm.
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