Multi-manager compensation

Hi all -

Was hoping to get input on what market compensation for typical multi-manager platforms is (think citadel / surveyor, BAM, milleniums of the world). I'm a Senior Analyst (graduated in '11) making a transition from a single manager fund (>10B AUM; think Eminence, Highline, Soros of the world) to a multimanager platform with a lean <1B pod and don't really have a frame of reference for what market rates are for multi-manager platforms in terms of base+bonus...any input would be helpful

Thanks...

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Comments (8)

Feb 1, 2016

I saw a post a while back where a guy was relying information he got from a former PM in terms of reasonable bonus pool splits (as a % of total) between PM, Senior Analyst, Analyst, etc at a multi-manager fund. I tried to find it, but was not successful - maybe this will jog someone's memory and they can provide better info.

Feb 1, 2016

if you are at a multi manager all those numbers will be decided by the PMs who brought you over. Generally there is no standard for analysts, it is based on the deal the PM has with the firm and what he wants to give you out of that deal. At most of these places there are also analysts who work outside of portfolio management pods that provide analysis to everyone...usually economists. But if you came over or were hired by a PM he is the one who will pay you.

Nov 23, 2016
Bondarb:

if you are at a multi manager all those numbers will be decided by the PMs who brought you over. Generally there is no standard for analysts, it is based on the deal the PM has with the firm and what he wants to give you out of that deal. At most of these places there are also analysts who work outside of portfolio management pods that provide analysis to everyone...usually economists. But if you came over or were hired by a PM he is the one who will pay you.

hey @Bondarb .... can you provide a list of multi-manager platforms (besides the obvious, BAM and Millennium)?

Feb 2, 2016

I would think if you're a senior analyst at a large well-regarded shop, compensation is fair game to discuss/seriously negotiate once you get into later interview stages. So you tell us when you get there.

Feb 9, 2016

Varies a lot. Goal should be to negotiate some % of PnL that will deliver substantial upside if the pod does well. If you don't have such a deal you effectively end up as "just an analyst", and the PM will pay you what s/he thinks you need to stick around (e.g. comparable to what you'd make at other shops) and keep any 'excess' profits.

Aim to structure a deal that would, in a 'good' year, pay you more than you'd make at a big single name shop. Since you don't get management fees in a pod, your earnings will be more volatile (at a big single name you rarely get 0 bonus, even if the firm loses money) and your career risk much higher, so you need to be compensated for that.

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Feb 9, 2016

If you don't mind me asking, why did you move from an Eminence/Highline type of fund to a multimanager platform? What were the motivations?

Feb 10, 2016

most PM's aren't going to offer you a % of pnl as an analyst who's never worked for them unless they're a new PM with no track record. maybe a couple years in, but to start out it's pretty unlikely unless your reputation really precedes you (because as a relatively junior person with no track record, you really have no leverage)

Feb 11, 2016
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