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salary - could be different could be the same bonus - could be different could be the same culture - could be different could be the same
OP, this question is not possible to answer.
Not sure who gave him MS, but yea I know its a broad question. In terms of AUM, its probably somewhere around $5 billion - $10 billion. I know salaries vary between credit and equity, but I assumed that GENERALLY one was higher paid than the other. I guess it varies widely then.
Theres many types of equity funds and many types of credit funds. Is this hypothetical credit fund looking at some highly illiquid, esoteric shit & pulling in 2x, 3x, 4x baggers? Or are they focused on consistently pulling in a 10-12% return with no drawdowns to speak of?
Pretty sure the comp structure will be very different for the above two hypothetical credit funds.
There's not a consistent gap between credit and equity HF comp that I've ever noticed that favors one over the other every time. All very firm-specific like the others have said.
you're not going to notice any salary difference between funds that specialize in different products for what i'm assuming is an entry level analyst. the ONLY thing i can think of off the top of my head is that if the fund's product/strategy is hot, it will probably be able to raise AUM much easier which could lead to, but not guarantee, higher compensation.
and i mean culture? what kind of question is that? come on.
Headcount, AUM and fees should in theory let you put a range on comp.
whatwhatwhat,
Thanks. Yea, I knew it was a broad question. The least I was hoping for was that someone would share their experience with a Credit-focused fund.What kind of credit-focused fund? Mortgage-backed? Distressed debt? Convert arb? None of these will help with any of the comp questions, but they MIGHT be able to help with the culture question. Probably not though.
That said, you don't really need to worry about it yet. Hopefully that doesn't come across as mean, but if the time comes when this has any impact on you personally, you will (hopefully) be asking a much narrower and more nuanced question (strategy/asset class a vs. strategy/asset class b, and more importantly in terms of culture and compensation fund x vs. fund y.)
By the time most candidates are competitive for hedge fund jobs, they have already started to gravitate towards certain styles and asset classes by the nature of their skills, inclinations, and experiences (ie I'm a fundamental guy, but am I more interested in a sector-focused equity role or a generalist distressed debt role? I'm a desk quant, but do I want to do mortgage/structured credit work or quant-driven equities? as loose examples).
Both will generally pay you just enough to entice you to come there from another firm and just enough to keep you there once you're an employee. It can be a little or a lot of money depending how much they perceive your worth and how low they think they can pay you without risk of leaving the firm. As for exact numbers: impossible to answer, as others have mentioned.
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