How is HF portfolio manager compensation structured?Subscribe
Obviously, base plus bonus, but I am looking for the typical structure of pay outs on the bonus -- how is that determined?
I am interviewing with a L/S equity fund right now for a PM / partner role. The founder of the firm told me on the phone last night that I am their leading candidate and wants to fly me back out to meet them again on Friday / over the weekend. I think it is likely I will receive an offer.
The fund has a few hundred million AUM and intends to raise additional capital (they have a 20 year history so that's likely, though I will check it out in more detail before accepting). My job would be to build a team and create a small cap special situations book from scratch doing whatever is necessary to make that happen, and I would then have complete discretion over the book (size of AUM tbd but likely 100-300 million) with a small team of analysts working for me.
I have done similar work at my current firm and I know it will be a shitload of effort, so I want to make sure I get paid appropriately. How should I think about structuring the comp? Founder has talked about base + bonus and possibly giving me some equity in the firm in some way (details TBD).
Also, I am wondering what I should ask for in milestone payments since a good chunk of the work is non-investment related. If I take the job, I will be bringing significant "systems" expertise to improve their investment research process (and will need to set that up which will be time consuming), will be hiring new analysts and training, will be involved in capital raising discussions / marketing, etc. I am not interested in doing those things "for free," and while those items are partly covered by the base, I want to make sure I don't spend too much time on non-performance related tasks without getting paid.
So basically, price this role. I don't trust anyone at any firm to make me a fair offer, so what should I ask for?
Any input appreciated, especially from any current equity PMs. SBs for all helpful replies.