Do people in PE operations get paid well?
Do people in PE operations get paid well? How do their salaries compare to those on the actual investment team? Thanks so much
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Do you mean operating teams or back office operations?
operating teams w consulting backgrounds
https://www.heidrick.com/Knowledge-Center/Publication/2019_North_Americ…
Not sure about at the junior level, but a family friend worked in ops at a MF and basically would be plugged in as CEO/other executive position at portfolio companies in his industry vertical where the MF didn't trust the current management. His background was being CEO of a pretty major company in that industry, and is seen as an expert in the space.
He's done very well for himself, but my understanding is that it's a very different type of comp vs investment professionals. He is essentially getting executive pay from a midsized company that got bought by PE firm- if the company eventually has a good exit, he makes a ton of money. If it flounders and the PE firm loses money, he makes very little. His salary is relatively low (around ~1M) a year, but he said the good years can seriously make up for the down years. That being said, I think a lot of his compensation is coming directly from the portfolio co (whether in salary or stock), so this is obviously a different model than the average 25 year old working in ops takin ga salary from the PE firm. However, this is probably what the pinnacle of an ops job looks like at a PE firm.
*Not shit talking here, good post
I was trying to draw the comparison to an 'equal' senior position in finance (IB MD, PE partner, HF/AM PM, etc) where one can earn more in standard salary, but agree that I obviously sound insane calling a 1M salary low.
Paid well? Yes. As well as investment side? No (speaking in terms of the associate position)
I recruited for a couple while at MBB (one MF one Upper MM). The all-in comp was about $190 for one firm and $200 for the other. Both firms paid more for investment associates but understandable. The role was inherently different though and hours were better. They could get bad depending on what was going on at the port co you are assigned to but on average it seemed 60-70 per week based on the people I talked to. If you are getting close to an exit/company is blowing up you will be working 90+ and you could be stuck like that for 6 months depending on the situation.
Ultimately it is a different skill set and type of work. It did seem most of the senior members though came from industry, although that could change as these roles become more and more prevalent.
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