PE fund investing comp

wabo22's picture
Rank: Monkey | 65

I'm in the later stages of interviewing for a really cool firm that essentially functions as a multifamily office with every major asset class covered, but a particular focus on Alts.

I'm interviewing for a PE manager selection/fund investing role across primaries, secondaries, and co-investments. It seems to me like around half of the investment professionals are focused on PE/VC fund investing, with a few dedicated to HF, mutual funds, or real estate.

The team is really impressive with most of the more junior people coming from IB or manager selection roles, and the senior people either coming through as Associates, coming from direct PE investing, or joining out of top MBA programs.

The headhunter insists he has no idea what comp would be but also claims whatever I'm reasonably expecting, they'll probably be able to make it work.

Does anyone have a good sense what a range of comp may be for 1st year Associate here? They have $30B in AUM and ~25-30 investment professionals if that's useful.

Comments (16)

May 8, 2019

I'm at a very similar shop in a tier 1 city. Similar AUM but not as many people on the team.

235 all in (135 base, 75% target bonus for year 1 associate).

    • 1
May 11, 2019
NuclearPenguins:

I'm at a very similar shop in a tier 1 city. Similar AUM but not as many people on the team.

235 all in (135 base, 75% target bonus for year 1 associate).

Do you get carry?

Also is your package market rate? It seems outstanding to be honest

May 8, 2019

No carry at this point, unfortunately.

May 10, 2019

for family shops, the challenge is that you get what the patriarch thinks you should get.
I wouldn't expect meritocracy or market rates.
There's surveys out there, and I can send you some if you DM me.
But I don't think it will ave much bearing on what they will pay you.

May 15, 2019

From a recent LP compensation survey with a sample of 23 associates:

  • Average: $94k base, $21k bonus ($30k max)
  • Median: $83k base, $15k bonus ($33k max)
  • Upper Quartile: $113k base, $33k bonus ($45k max)
  • Lower Quartile: $75k base, $9k bonus ($13k max)

Of note that about half of respondents were at public pensions, private sector responses were closer to the average / top quartile figures.

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May 15, 2019

I don't disagree with the range but when you have NuclearPenguins with his comp so much higher in a similar role, it confuses me. Not saying I'm expecting $235k to be the norm but when half the associates at the firm come from IB and the other half ER/general other AM, it's hard to entice them (especially in a high COL city) with anything less than $140-160k all in if I would guess.

Do you have that report you're able to send? I'm curious.

    • 1
May 15, 2019

"@NuclearPenguins seems to have a bit above market, but indicative of the type of role

"@I.Am.Liquid. seemed to have posted generally accurate info.

Also, as "@earthwalker7 stated. There are no real standards, especially for a family office

May 15, 2019

I can PM you the report. It slices and dices different roles with several organizational level & personal characteristics.

In response to the talent pool & high COL, you must also consider that at a family office you will likely work at a reduced cadence with a better work/life balance than IB - which some may find enticing, though not monetarily.

I've worked in a similar role and we attracted talent of a similar caliber (though more so at the PM level). From my experience, my comment was a pretty good reflection of what an associate level employee would make. Again, being private sector and in a high COL city, I would expect the pay for this position to be closer to the top quartile. I'm sure there were a few associates in the survey who reported outsized base or bonus figures bringing their all in comp more in line with NuclearPenguins.

May 8, 2019

I.Am.Liquid touched on the biggest reason, which is that public sector comp sucks compared to private sector. I don't have any specifics to offer beyond that unfortunately.

Also size / type of institution matters a ton. For example, I know that at my alma mater's endowment (small liberal arts school probably w/ like $1B in AUM), there is no way associates are making anywhere close what I am making.

May 15, 2019
I.Am.Liquid.:

From a recent LP compensation survey with a sample of 23 associates:

  • Average: $94k base, $21k bonus ($30k max)
  • Median: $83k base, $15k bonus ($33k max)
  • Upper Quartile: $113k base, $33k bonus ($45k max)
  • Lower Quartile: $75k base, $9k bonus ($13k max)

Of note that about half of respondents were at public pensions, private sector responses were closer to the average / top quartile figures.

May I know the source? Thanks.

May 15, 2019
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