Comments (31)

Nov 14, 2010

It varies from firm to firm. I've seen anywhere from the 200s to 400k. The salary component is usually at least 100k, with an increasingly higher percentage coming from bonus as you approach that 400 mark.

Nov 14, 2010
DontMakeMeShortYou:

It varies from firm to firm. I've seen anywhere from the 200s to 400k. The salary component is usually at least 100k, with an increasingly higher percentage coming from bonus as you approach that 400 mark.

200-400k fresh out of IB?? wow! gotta tell me who's shelling out 400k :D

How good does top PE shop comp get 5 years out?

Greed is Good.

Nov 14, 2010
konig:
DontMakeMeShortYou:

It varies from firm to firm. I've seen anywhere from the 200s to 400k. The salary component is usually at least 100k, with an increasingly higher percentage coming from bonus as you approach that 400 mark.

200-400k fresh out of IB?? wow! gotta tell me who's shelling out 400k :D

How good does top PE shop comp get 5 years out?

Dude if you are as wealthy as you claim I don't understand your fascination with the highest paying opportunities in finance. Do you even know what these jobs do? Have you ever considered culture of a firm can be worth differences in compensation? "Wow gotta tell me who's shelling out 400k." First, you probably will never even get an interview with one of these firms Second you are 18, a lot can change in the industry in 6 years. Third, just shut up you sound like a fucking idiot.

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Nov 14, 2010

From what I hear, KKR pays the most for pre-MBA associates especially during a good market. I recall seeing that somewhere on WSO, but I may be wrong...

Nov 14, 2010

disclaimer: 98% of what I am about to say is an amalgam of information gained from WSO

megafund's pay the most with some exceptions (generally #billions in fund correlates to comp, not a strict rule)

bx/kkr pay the most (closer to 400) but work the most hours
carlyle is close
tpg/bain etc pay closer to 300

Don't have much to say about this specific bashing, but I think it's a little retarded when people ask a question then get railed on for being so presumptuous that they can get this type of job. Sometimes people like to know stuff, answer if you want to, but don't bitch them out for just being curious.

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Nov 14, 2010
breakinginnew:

disclaimer: 98% of what I am about to say is an amalgam of information gained from WSO

megafund's pay the most with some exceptions (generally #billions in fund correlates to comp, not a strict rule)

bx/kkr pay the most (closer to 400) but work the most hours
carlyle is close
tpg/bain etc pay closer to 300

Don't have much to say about this specific bashing, but I think it's a little retarded when people ask a question then get railed on for being so presumptuous that they can get this type of job. Sometimes people like to know stuff, answer if you want to, but don't bitch them out for just being curious.

Thanks for the disclaimer about the comp.

Most of the firms you mentioned pay 250-325k cash, the 400 number includes phantom equity (assuming the fund is performing) and also a rate of return on your co-invest.

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Nov 14, 2010
breakinginnew:

bx/kkr pay the most (closer to 400) but work the most hours

What are pre-MBA associates at the Megafunds looking at for hours these days...?

Nov 15, 2010

I've never heard of 400k cash... perhaps with what they call "phantom carry" or something like that... meaning like part of the returns of the fund you'll get in the future... I've heard more like $300k cash first year and $350 for second year at the tip top firms.

Anyone know if BX / Carlyle pay the say for Associates in RE. I hope not - or I'm fucking underpaid!!! lol

Nov 15, 2010

Carlyle's comp last year was a lot lower than the above. I think they were at like $210k all-in last year for first years. Might be an anomaly though.

Nov 15, 2010

So I'm one of the people who will never get one of these jobs. I'm quite content with my (relatively) mediocre career in consulting. However, I am curious as hell now. I personally know people in S+T who are in their late 20s making over 700K a year in good years. I also know a guy in M&A who (claims he) makes over 500K a year. Based on these Ibanking and S+T numbers, and how much more highly coveted these PE megafund jobs are, I thought people would (easily) be able to make 7 figures by the time they're 30 working for Blackstone or KKR. I'm a little surprised to find that you guys are surprised that people claim these places pay 400K...

Anyone care to explain? And I apologize in advance for my stupid post. It's just that I'm really very curious.

Nov 15, 2010
everythingsucks:

So I'm one of the people who will never get one of these jobs. I'm quite content with my (relatively) mediocre career in consulting. However, I am curious as hell now. I personally know people in S+T who are in their late 20s making over 700K a year in good years. I also know a guy in M&A who (claims he) makes over 500K a year. Based on these Ibanking and S+T numbers, and how much more highly coveted these PE megafund jobs are, I thought people would (easily) be able to make 7 figures by the time they're 30 working for Blackstone or KKR. I'm a little surprised to find that you guys are surprised that people claim these places pay 400K...

Anyone care to explain? And I apologize in advance for my stupid post. It's just that I'm really very curious.

These are for pre-mba analysts/associates. Usually, figure them to be 24 or 25 year olds. For the post-MBAs, many of these megafunds were offering a guaranteed "1 in 2", meaning $1mm in 2 years. Additionally, many of these post-MBAs receive carry in the funds so the all-in number is much higher.

Nov 15, 2010
HerSerendipity:
everythingsucks:

So I'm one of the people who will never get one of these jobs. I'm quite content with my (relatively) mediocre career in consulting. However, I am curious as hell now. I personally know people in S+T who are in their late 20s making over 700K a year in good years. I also know a guy in M&A who (claims he) makes over 500K a year. Based on these Ibanking and S+T numbers, and how much more highly coveted these PE megafund jobs are, I thought people would (easily) be able to make 7 figures by the time they're 30 working for Blackstone or KKR. I'm a little surprised to find that you guys are surprised that people claim these places pay 400K...

Anyone care to explain? And I apologize in advance for my stupid post. It's just that I'm really very curious.

These are for pre-mba analysts/associates. Usually, figure them to be 24 or 25 year olds. For the post-MBAs, many of these megafunds were offering a guaranteed "1 in 2", meaning $1mm in 2 years. Additionally, many of these post-MBAs receive carry in the funds so the all-in number is much higher.

Thanks! That definitely clears it up.

Nov 15, 2010

If only I had enough SBs :D thanks for all the replies!

Greed is Good.

Nov 15, 2010

From the summer of 07, at bankersball:

"Heard on the Street: 1 in 2 for KKR
By BankersBall on Aug 19, 2007 in Cube Life, Salaries | comments(20)

Psssst ... heard pre-mba associates at KKR are making $1 in 2."
http://www.bankersball.com/?s=kkr
I have no idea if this ever turned out to be true or not, but the idea was like 400k the first year and 600k the second.

Nov 15, 2010

How much would you net as an MBA summer associate at KKR/BX? Assuming it's a three month program, would it just be base pay/4?

Nov 17, 2010

I've heard 350, 450 for the first and second years in Pre-MBA at KKR and Blackstone. Both from very reliable sources. And yes, that is fuckin ridiculous for a 23-24 year old.

Nov 19, 2010
Marcus_Halberstram:

I've heard 350, 450 for the first and second years in Pre-MBA at KKR and Blackstone. Both from very reliable sources. And yes, that is fuckin ridiculous for a 23-24 year old.

That's target comp, not cash.

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Nov 19, 2010

Comp is comp, IMO. Unless the question was "what is the highest cash comp paying PE firm?"

Nov 19, 2010
Marcus_Halberstram:

Comp is comp, IMO. Unless the question was "what is the highest cash comp paying PE firm?"

But that number fluctuates big time... alot of TPG analysts class of 2007 lost their ass so their comp assuming a $100k at co-invest would have been < $225k

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Nov 21, 2010
Slaying Alpha:
Marcus_Halberstram:

Comp is comp, IMO. Unless the question was "what is the highest cash comp paying PE firm?"

But that number fluctuates big time... alot of TPG analysts class of 2007 lost their ass so their comp assuming a $100k at co-invest would have been < $225k

Hmm... good point. I would say your comp isn't the economic returns on the investment, but its the notional amount invested on your behalf. I.e. there was a megafund portco I dealt with that had returned the sponsor over 300% IRR in a 4 year period. I would suggest that associates at X fund are compensated $1+million.

Nov 19, 2010

Counter to that SLP with leverage would have been >$400k

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Nov 24, 2010

My good friend just did a 2 year stint at TPG and was one of the top associates there, brought in 325 cash

Dec 1, 2010
sherborn:

My good friend just did a 2 year stint at TPG and was one of the top associates there, brought in 325 cash

$325 per year? or over the course of the two years?

Nov 30, 2010

say you are at a decent sized firm and make 250k your first year, what is the breakdown between base and year end bonus?

Dec 2, 2010

It always depends on the company that you are working for. Some companies are more generous than the others.

Apply for cheap loans online.

Dec 2, 2010

true

the megafunds used to promise 1 million in 2 years, average starting salaries were around 220K a year. not sure if thats changed now.

im not sure about the mm funds like JLL. Summit & TA definitely have different compensation model. But they aren't the only cold calling shops out there.

whats ur time horizon, 1 year? or 7 years. People could argue VC funds pay the most since you essentially make an investment, receive equity, and when you IPO the company, u get a shit load of dough or ur equity stake multiplies exponentially.

Others would argue that start up/relatively new pe shops that have 6 figure salaries (100K+) are the best since they usually give you a carry after the second year.

at the end of the day, ur pay depends on success and time horizon.

We're about to enter a Great Depression.
Don't you want a president who's already dressed for it?

I'm making it up as I go along.

Dec 2, 2010

I would say my time horizon is something like 10 - 15 years. In that case, I guess that working at a fund like Summit gives me a greater pay overall because IF your portfolio companies get sold or IPOed and your equity stakes increase dramatically in value, you may well get a huge paycheck. It's a higher risk since you don't get carry early on, but as always, higher risk also means (possibly) higher reward. Do you agree?

Dec 2, 2010
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Dec 2, 2010