PE Associate Offer - Comp Too Low?

trippertoll282's picture
Rank: Gorilla | 552

Accepted a 2021 offer at a MM PE shop in a Tier 2 City: Chicago/DC/Atlanta. AUM of $1B+ and raising a fund of around $500M. I thought the salary they offered $100K base + 100% bonus target was street, but I am seeing a lot threads saying that street is closer to $250K. Anyone have any clarity around this?

Region: 
United States - Midwest

Comments (29)

  • VP in VC
Feb 17, 2020

Nah for 9 digit fund and 1B aum 200k is fine

Feb 17, 2020

Maybe a bit low for Chicago, but not really for DC / ATL, especially for that fund size

Feb 17, 2020

weird bc DC is way more expensive then Chicago.

    • 1
Feb 17, 2020

I think there are more PE firms competing for talent in DC than Chicago though, which likely helps comp in Chicago

Feb 18, 2020

Cost of living has absolutely nothing to do with comp in this field. I don't get why people think it does. Same with big law, same with IB, etc.

    • 1
Feb 17, 2020

hey! do you mind sharing your experience recruiting in a T2 city? is it also through recruiters?

Array

Feb 17, 2020

That seems fine, especially in a tier 2 city.

Feb 17, 2020

Looks pretty good to me.

Feb 17, 2020

Congrats on the offer!

$200K for a $500M fund in a Tier 2 city is very fair in my opinion. When people reference $250K, they're probably thinking about a larger shop ($2-3B fund).

Feb 17, 2020

$200K for $500M fund is market, even above market since they're saying they're still raising it.

Most Helpful
Feb 18, 2020

Agree that $200k is certainly market for a MM fund of that fund size, especially in a Tier 2 city. If you're $200k or above, that's more or less market for MM PE, whether you're in a Tier 1 or Tier 2 city.

I would also caution folks to not get so focused on $200k vs. $250k for an Associate role. $50k pre-tax is like $30k post-tax. In the grand scheme of things, that's immaterial relative to thinking about whether an opportunity will set you up for the medium to long-term (be it staying at the same firm or giving you the right learning experiences for the next career move).

Focus more on learning experience, responsibility, and long-term career advancement. And that does not mean MF/UMM or bust. There are plenty of MM/LMM firms that regularly hit >3x CoC but aren't particularly well known. There's absolutely nothing with trying to develop a career in a firm like that (and depending on the person, arguably better than MF/UMM). As you gain more work experience, you'll learn to appreciate MF/UMM vs. MM/LMM is highly dependent on an individual's situation. I know experienced folks (>5 yrs of work) that turned down MF/UMM opportunities because lifestyle sacrifices weren't worth the pay (not to say MM/LMM automatically equals better lifestyle) or they realized it's much harder to set yourself apart and move up in MF/UMM.

    • 3
  • Analyst 1 in PE - LBOs
Feb 18, 2020

how does CoC apply to PE? haven't started yet and wondering, doesn't seem like an industry metric.

  • Analyst 2 in PE - Other
Feb 18, 2020

Cash on cash....

  • Analyst 1 in CorpDev
Feb 18, 2020

How do you work in PE and not know what cash on cash is...

Feb 19, 2020

CoC = cash on cash. It's literally one of the most common and important metrics/phrases in PE.

Feb 18, 2020

200 is fine? whats real on this forum. analysts making 180k their first year or pe associates making 200k?

then we have guys in tech making 240-270k after 3 years at a fang, working from 11am-4pm. If the kid from stern who told me to abandon my cs degree was still in country, i'd strangle him with a shoe string and feed him to the homeless in skid row

What concert costs 45 cents? 50 Cent feat. Nickelback.

    • 1
    • 2
Feb 18, 2020
Jamie_Diamond:

200 is fine? whats real on this forum. analysts making 180k their first year or pe associates making 200k?

then we have guys in tech making 240-270k after 3 years at a fang, working from 11am-4pm. If the kid from stern who told me to abandon my cs degree was still in country, i'd strangle him with a shoe string and feed him to the homeless in skid row

They're all real. $180K+ is Centerview/Qatalyst. $200K is a PE fund that's yet to raise a $500M fund, so previous fund probably $250-350M. FAANG fresh grad is $150-180K, lateral to another in 2-3 years or get promoted and ur at $250K easy.

    • 2
  • Analyst 2 in IB - Gen
Feb 19, 2020

Can confirm that someone I know cleared 230K in Tech Finance 4th year after spending 3 years at 2 of the MAGA tech giants. Works 9-6 schedule.

  • Analyst 1 in PE - LBOs
Feb 18, 2020

Anyone know comp for Riverside Company / Audax ? thx.

Feb 18, 2020
Comment
Feb 18, 2020