Growth Equity - Fair offer??

Currently a 2nd year analyst at a top group/bank and recently received an offer for a summer 2022 associate position at a growth equity firm. Latest fund is ~$2bn with ~$4-5bn AUM.

The offer I received has a target all-in comp of ~$230-$250k as a first year associate, and apparently only goes up $15k or so the second year. Expected hours are 60-65 per week on average. No carried interest or co-invest, as those kick in at the VP level (after 4-5 years as an associate, no MBA required).

Is this a fair offer or is it a lowball offer? My all-in comp as a first year IB analyst was ~$205k and I’m expecting ~$250k for my second year thanks to the recent IB pay bump. It’s kind of hard to swallow that I may be taking a paycut from 2nd year IB to 1st year growth equity associate. My bank has a 2 year analyst program, so would be expecting $300k+ for sure if I stayed on as a first year associate…

Could someone in growth please let me know if I’m getting screwed here or if it’s a fair offer?

 

Hey congrats on your offer! Only a first year analyst but have been lurking around Growth Equity posts as I hope to exit into it soon. A few second years in my group exited into GE with relatively similar #s so I expect that’s pretty in-line with street.

Not to hijack your post but if have time, would love to chat / dm regarding how you navigated placement if possible. Growth equity seems like a great space to be in and I’m afraid I’ll be left behind despite being at a decent shop.

Thanks!

 

Doesn’t seem too far off. I’m in a similar position as you and accepted an offer with target of ~300. Fund is slightly larger. Still hurts relative to expected IB Aso comp, but I think we’ll like the work better.

 

Lol didn’t mean to flex — was just trying to give full context. tbh think they can find a better offer/one with higher comp, but that’s also not the only factor. If they like the firm and see potential for progression, then the 50k will be meaningless over time anyways

 

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