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?
This offer is market. A ton of my peers doing MM buyout are expecting ~$250k in all-in comp.
I see - is it normal for comp to only go up by ~15k from first year to second year?
Within the normal range of what I've seen.
After the increase in pay at IBs, IB associate positions to have meaningfully better comp than buyside shops in the real middle market at the associate level.
Also if this is a fair offer, then I assume people will say the paycut is worth it once you start getting carry at the VP level. What’s the expected carry for a VP at a growth equity firm with $2bn latest fund? Both % and $
I imagine the hourly pay comes out higher than your current IB pay so I’d guess it’s fair. Growth equity is great to stay in too so I don’t see why not to take it if you like GE.
Depends if you want to take the foot of the gas and change trajectory in a slightly different direction.
If you have gas in the tank keep chugging along in IB. Don’t have to exit right away sir
Yeah thats 100% market according to the details you provided. That slight paycut is not going to mean much if you find the work more interesting.
Very much market but highlights how PE doesn’t move lock step with IB comp raises.
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.
Why'd you have to flex on the kid?
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
It sounds like a good gig :)
What city is the offer in
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