Currently talking with a small $200-300M L/S fund about an internship and the fund wasn't looking for an intern until I reached out. Fund manager basically asked me what I was expecting in terms of compensation, and I'm not super sure what market rate would be. $20-25 an hour? Or would this be too much? I'm in a large, expensive metro area for context.
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Maybe try saying that you found out from your career center that $20-$25 is a pretty common range?
first figure out what it will cost to live in that city per month...for example
rent $1200 public transit monthly pass $100 food (groceries) $100/week = $400/month utilities (cell, home internet, electricity) $150/month
so, that is a minimum cost of $1850 to live in that city for 1 month...lets round that up to $2000. Multiply by 150% = $3000
assuming you will be working 40 hours per week for 4 weeks = 160 hours per month, so you would need a minimum of $13/hour to cover your basic expenses just to live.
However, interns are generally not paid per hour, but a flat rate per month...so it would be reasonable to ask for $3000/month (comes out to $150/day) in the fictional city i described at the top. Remember that hours in finance can often be long, and we are not paid for hours worked, but rather for results achieved, so asking for an hourly pay is not inline with the industry.
Also remember that you are a leach on this company...the summer internship is essentially a 2 month long interview, where you are paid to be there...and you most likely will contribute nothing during your time there...since you will really be asking them to teach you, and you are hoping for the internship to result in an offer for a full-time job.
Assuming the numbers from above are inline, then I would respond with something like "i'd need to make at least 3k/month...to cover my basic cost of living in XYZ city. While of course i'd happily accept more than that if your firm pays a higher stipend for interns, i'm excited for the opportunity to learn more about your firm from the inside, and i'm also hoping if the summer works out well, that we can turn this into something more permanent in the future.
Noted, and of course I understand that I'm a leech. Just trying to get experience and not be broke is all. Thanks for the response nofundforoldtraders
Nice answer
20-25 is way too high. You’re an intern for god’s sake. Try taking your minimum wage x 1.5
... which would be more or less in that range for NYC and SF
Wow, I did not know that the democrats somehow got NYC to pay 15 mw. Thanks for the insight.
Is this part-time during the semester or a full-time summer internship?
I've heard many funds pay interns in bananas
Interned at a top HF last summer. 15/hr, any hours over 40 $23
I had a research internship making 3500 a month.
I second the $3000-$3500 range ask.
Worst they can say is no, and then a discussion/negotiation can commence.
Also, props on getting a paid HF internship.
Interned at a small HF two summers ago. Made 3K a month.
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