Middle Market Funds - Level of Pay (Salary / Bonus) ???

TheKing's picture
Rank: Senior Neanderthal | 5,717

Quick question for those in the industry:

What should an Associate (first year) at a lower middle market PE shop be paid? He thinks he's underpaid and I'm not so sure. By way of background, the fund he's at is ~200 - ~300 million in size. He makes either 85 or 90K in salary, with bonus being some % of that. I thought it sounded about right for the fund size, but I can't be sure.

Anyone that chimes in with good info is in line for a silver banana.

Comments (14)

Nov 10, 2010

Where?

Nov 10, 2010

I know a couple of Associates in Lower Middle Market shops. As a first year, your buddy can expect somewhere in the $150k - $175k range. As a 2nd year, closer to $165k - $200k.

Nov 10, 2010
CompBanker:

I know a couple of Associates in Lower Middle Market shops. As a first year, your buddy can expect somewhere in the $150k - $175k range. As a 2nd year, closer to $165k - $200k.

Seems spot on.

Regards

Nov 10, 2010

Thanks, what's the appropriate split between salary and bonus? That's the big question that caused our disagreement. Thanks in advance.

Nov 10, 2010
TheKing:

Thanks, what's the appropriate split between salary and bonus? That's the big question that caused our disagreement. Thanks in advance.

From my sources, mm bonus is around 90-100% of salary. The 175k all-in comp sounds right to me too.

Nov 10, 2010

From my limited (two) sources, both have bonuses structured as 50% of base, and the bonuses are pretty much guaranteed to be paid in full each year.

Jun 19, 2013

I work in the lower MM space. Made $170k this year (including bonus). Let me know if that helps

Jun 20, 2013

Does compensation change at all with a higher AUM? Curious to hear anything about funds with $1-3 bn AUM and most recent funds in the size of $500+mm.

Jun 20, 2013
Mkazimi:

I work in the lower MM space. Made $170k this year (including bonus). Let me know if that helps

no inflation on dis rite?

"so i herd u liek mudkipz" - sum kid
"I'd watergun the **** outta that." - Kassad

Jun 20, 2013

Is this compensation for an associate 1st year out of undergrad or a couple years post?

Jun 20, 2013
Mkazimi:

I work in the lower MM space. Made $170k this year (including bonus). Let me know if that helps

Thanks for the data point. Would you mind sharing the approximate size of your fund and some comparable cities, if not NYC.

Regards

Jun 20, 2013

interested as well. I've been networking with funds on the west coast with around $3-5B AUM.

they aren't mega fund at all but i'd consider them to be higher MM funds? regardless, I've been told associates at Gores on the M&A team (not sure about operational guys) get around $220K all in?

does this seem about right? (note- the firm has about $3.6B AUM listed on the website)

    • 1
Jun 21, 2013
AnalystMonkey2769:

interested as well. I've been networking with funds on the west coast with around $3-5B AUM.

they aren't mega fund at all but i'd consider them to be higher MM funds? regardless, I've been told associates at Gores on the M&A team (not sure about operational guys) get around $220K all in?

does this seem about right? (note- the firm has about $3.6B AUM listed on the website)

The distinction of MM and upper-MM has to do with the size of the deals that the firm targets, not the AUM figure. Generally speaking, though, when most people refer to upper-MM firms, you're talking about funds that are investing out of individual funds of $2.5bn+. AUM matters a lot less at the Associate level.

Jun 22, 2013
Comment