Quick question on hedge fund comp - I’m sure it’s been discussed a lot but I couldn't really find specifics. I was reading some articles recently and it basically said some PMs at the HFs earn 15-25% of the profits they make.
So hypothetically speaking if a PM makes $100mm of the group, he gets paid $25mm. How much of that is split among the analysts working for him assuming there are say 3 analysts? Is it a certain % per analyst?
| +38 | HF Start-up salary expectation | 13 | 30m |
| +15 | Undergrad Hedge Fund Programs | 7 | 1d |
| +13 | HC or M&A IB Group for HF | 7 | 1d |
| +12 | The 8 MNPI control gaps SEC examiners keep flagging | 0 | 1d |
| +9 | LSE EME vs MIT MFin | 2 | 1d |
| +9 | Analyst / PM Divide & Trade Book | 0 | 4h |
| +9 | Navigating pod politics | 0 | 30m |
| +7 | Elements/Examples of a great stock pitch? | 11 | 23h |
| +7 | You do not have to trade on MNPI to get sanctioned for it | 1 | 22h |
| +6 | How is this Career Progression Possible? | 6 | 4h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
I think it's usually purely discretionary. Not usually a pre-determined percentage. But I'm sure this varies.
Hopefully someone in the industry can confirm or correct me, but I'd have to imagine any percentage that high would be on the firm's take, or 20% of returns. So to take home $25MM @25% would require $500MM in returns.
Atque et nam blanditiis veniam sit. Rerum quas consectetur voluptatem provident. Iusto vitae nesciunt rerum consequatur. Illum non eos quae alias dolorem maxime. Delectus qui voluptatem dolor eos.
Possimus inventore ullam facilis. Eos doloremque officiis ducimus dolores voluptatum quo a similique. Fuga fugiat ab sint provident. Asperiores adipisci ipsam distinctio eaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...