2013 Start - PE Associate Numbers

270K already includes bonus? Thanks for sharing.

all-in. they do allow investment professionals to co-invest though.

Is this pre MBA or post MBA?

pre-mba of course. would love to hear the word on the street.

Baller.

Damn son

guys, not looking for props...wanted to provide the community some useful info and get some info from the broader group as well! thanks though

A thread about making you 270k/year pre-MBA will get props.

Log them in the WSO Company Database please!!!!!!!!!!!!!!!

What is your base salary?

140

Any other pe associates...what are your numbers or your friends?

Larger MM fund: $250k all-in ($120k base, $130k bonus)

These numbers make me salivate and want to practice for PE interviews.

140 base 90-110% bonus

soc, what size of fund is that? thanks

Depends on your definition but either large MM or small mega fund.

Thanks for sharing highlylevered, soc and bankingcy. I will be getting $125k base + $125k bonus + $100k in shadow equity every year. Can someone explain how shadow equity works (want to make sure it checks out with what the firm told me).

Hopefully there are more ppl that share as well...

Anyone have any idea on 3rd years?

150 all in + carry. $100mm fund

.

well done guys

140K base, up to 100% cash bonus for a large MM fund.

Which is more common - for bonuses to be structured as an "up to" or as a X% - X% target zone?

I've personally seen more "up to"'s in friends' offer letters, a couple of megafunds included.

"Up to" is way more common for offer letters - dont really want to commit in writing to what could be interpreted as a minimum bonus

The actual range I gave was just verbal from HR. My offer letter didn't even have an "up to", just said I'd be get a bonus and be eligible for co-invest

Right, figured as much. Am I correct in assuming the bonus ranges on the buyside are less volatile than in banking? Like this year for example, no investment bank is hitting the 100% of salary target that we all assumed was feasible when we went in.

op930 do you mind sharing type of fund (general size, etc)?

put my compensation in the Company Database (and lots of data in there for PE funds), but my last year for a small (~$700m) PE fund was $100 base $140 bonus - $240 all in, pre-MBA...still below market because I had been there for 3 years, but not terrible (no carry, no co-invest). this was back in 2008 though....

Can be categorized as megafund or large mm. great to hear more responses. looks like i got a bit less in base (140k seems like the standard for large mm). Still unsure of how my shadow equity works...would love to hear from someone in PE...

WallStreetOasis.com, one suggestion for the comp database is to make it searchable by which pe firms actually have comp info. so do a search for all pe firms that have comp data, say for an associate position, and then get a simple output table with three columns: company name, position name, and amount.

Just a suggestion. Thanks for the valuable service you're providing.

My understanding is that shadow or phantom equity is essentially incentive pay that compensates you as if you were an LP. The firm makes a 'phantom' co-investment on your behalf (phantom in that it is not actually contributed to the fund) and pays you the corresponding amount of distributions either when other LPs get distributions or at the end of a set period of time. You are never paid the initial 'principal' since technically it never existed. So what that means on a cash basis is - assuming your fund returns ~20% net IRRs - you'll get ~$20K/year with the benefit of carried interest tax rates but also obviously backloaded 3-5 years out (applying whatever discount rate you think is appropriate). I'm sure different firms do it differently, especially at the associate level, but that's my understanding of the basic principle.

TLDR - you get paid the gains on the principal without ever getting the principal.

Do you guys mind posting, your education level as well as experience.

Thanks

Almost all 2013 start PE associate recruits are currently 1st year analysts at investment banks (mostly bulge brackets / top boutiques, maybe some MBB consulting), 1 year out of undergrad.

Wow, almost 300K is a fuckton of money for a 25 Year old. Save wisely my friends.

thanks a lot for the info Soc.

Does anyone have PE Associate compensation in Europe?

I was told some really low numbers (compared to the US) in continental EU for MM fund (€70k salary, €45k bonus) and am not sure about numbers in London (which I am sure are higher).

highlylevered88Everyone's favorite topic...

What comp #s have Associates in this latest wave of hiring received?

I can start. Larger mid market fund. $270k all in target comp. No carry.

So the general consensus seems to be about $220-300 for pre-MBA associates...

Assuming the majority of you have 1-2 years of IB experience, can you comment how this figure might change for someone going straight out of undergrad to a PE shop?

I'm asking specifically because I'm interviewing for an $18bn fund at the pre-MBA assoc. level. These numbers look awesome, but curious if they would be different for somone in my position as I do not have those 1-2 years in IB.

Thanks

Not exactly 2013 start, but I've completed my first year (Pre-MBA) at a >$15B fund. Was in banking for 2 years beforehand.

I received $280k all-in (140/140), which is rising to $300k all-in (150/150) this coming year (2nd year). No carry or phantom equity.

Hope that helps

Large HF, NYC 150k base + 100% bonus

Out of curiosity how does this ramp up in 2nd year?

...

Not to revive a dead thread, but can anyone shed some light on mid-level comp figures (Principal / Director) at large MM / MF? Understood md/partner salary is a function of performance/carry (and can be backed out given you can calculate total fees relatively easily), but how much of this goes to the mid level guys?