How much do you think you make as average MD? Portfolio manager at a hedge fund? Partner in a PE shop? I am not talking Jamie Dimon, Stevie Cohen, Henry Kravis but an average senior person at these places?
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$2,743,054.33 per year
About $1-2m a year for each of those three. Obviously variable depending on fund size, firm size, whether you're head of desk etc, but in general that's the level.
I thought it was eleventy bajillion dollars.
So if you make the same amount of money across the board - was told S&T and Research are very similar at the top level (solid but not exceptional MD) why does everyone is dying to do IB or break into PE or HF - I also thought the lifestyle (hours) are pretty similar at that level
Because you'll get there twice as fast and open up ten times as many paths along your way
You can get to the top MUCH faster in S&T than you could in IBD. The naturally good traders rise in the rank like helicopters, unlike the typical hierarchical structure you go through in IBD
If you have your own PE fund or HF with a decent amount of aum the returns are much, much higher. Carry is great.
Amusingly most MD level jobs are sales jobs (gather assets, get into deals etc)
If you spend your entire life expecting the best case outcome, life will either exactly meet your expectations if it's perfect, or if life isn't perfect, it will be a disappointment.
I think a much better outcome to hope for is being retired and/or working 40 or fewer hours/week at a job you love by 37. That's an outcome that the median person in this thread can probably achieve.
Maybe, but there's something to be said for paying dues, too. I know some pretty profitable traders under 30 and don't know a single MD under 35 in trading. Ironically, one 33-year-old MD I know works in middle-office analytics at another firm.So more investment banking analysts make it to the very top? I thought 50% of the people in IB are forced to leave at every level (up or out policy) also doesn't make a lot of sense that partner associate ratio would be that different at a PE shop - you know the whole Indians/chiefs thing - to keep people fat and happy at the top - can't give away too many slices of the pie to the junior people
You make more in pe hf then ibd on average. And you get to wear jeans and a poll everyday. Perk.
As was said before...a 1% management fee on 750m - 1b gets split pretty nicely when ur not sharing it with an entire division
That's 10mn - if you have 4 partners - don't see anyone getting too rich - beyond 1-2mn that was mentioned before
Don't forget the carry (~20%).
Indeed. I'll take $10m base salary any day.
The point I was trying to make that there is no arbitrage in the system - if you are good enough to make a partner at blackstone a BB bank will pay you up a similar amount. also most will burn out before they even hit the equivalent of a vp level - do what you like, work with people you get along with and the money will come - but this seems to be too complicated a concept on this board - people want to live the dream!
Yeah yeah I get your point bro. I just disagree with it. Doesn't mean it's too complicated.
You're saying that excluding the guys who make silly money, people's salaries are comparable. I'm saying they're not. Your OP named guys in PE, HF, and banking (i.e. different parts of the finance world). I think the average pay across those industries varies. I do agree that pay within those industries is probably comparable.
And... I also love NY.
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