Minimum Pay for Regional PE Firm

IBD4PE's picture
Rank: Monkey | banana points 45

What would be the minimum pay you would expect to receive for a first year pre-MBA associate position at a regional PE firm (i.e. not NY, Chicago, LA, SF) with a current fund size of ~$500mm. I have 3 years IB experience at a strong MM firm in NY. I have heard from the headhunter that the firm will most likely offer 70k with 100% bonus which they typically payout at 80%. Is this too low an offer? Should I try to negotiate for more or should I just be happy to find a PE job in this market.

Comments (10)

Feb 24, 2010

pm me..i might be able to provide some thoughts.

Feb 24, 2010

Base pay is way too low.

Feb 24, 2010

Would it be more appropriate if it was 80-85k base? What about signing bonus / relocation expenses?

Feb 24, 2010

Way too low. Didn't you make more than that as a 3rd year analyst?

Feb 24, 2010

I made 180k all-in as a 3rd year. Remember this is not a megafund in a major city. What would you suggest is an appropriate offer?

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Feb 24, 2010

You can PM me if you would like....

My PE fund is a similar size, and I get 85k base, in 2009 bonus was $135k. $220k all-in. In two years, I get carry as well. This is NY though...

Feb 24, 2010
MoneyKingdom:

You can PM me if you would like....

My PE fund is a similar size, and I get 85k base, in 2009 bonus was $135k. $220k all-in. In two years, I get carry as well. This is NY though...

how much did you net per month (base+bonus), after taxes?

Feb 24, 2010

Even if it's not a megafund, a solid MM firm should pay very close, if not more, than your 3rd year salary. I would think 90K base with 80-120% bonus and possible co-invest, at the least, would be more appropriate. That's what I've heard regarding other regional MM funds. I haven't heard anything about signing bonus or relocation, so I can't comment there.

Feb 24, 2010

Hmm, I'm aware of a number of similar size PE shops that pay about what you're offered, maybe slightly more. I definitely do not think you should expect a co-invest. As a pre-MBA, co-invest and carry should NOT be expected. Given the market, they may be paying a slightly depressed base. If you're looking to negotiate, consider asking for 80k base. If I were you, I'd be happy to get an offer in this market. If you have a whole class of associates coming in, don't expect to be making more than your peers.

Feb 24, 2010
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