PE Pay

Seems on par with most I've heard. That is of course, if you are pre-MBA.

Fanker, curious to see how you were able to get the offer. Could you briefly list your qualifications? (school, where you worked, etc.)

Thanks.

spot on market -- more than i get, but i'm slightly under (80 base - 80 bonus)

Flashbang - my quals are as follows (kinda feel like i should put a ppt page together for this with fancy logos)

USC undergrad BB firm - Top tier analyst

My secret to getting a job was to show lots of energy - i think a lot of bankers are boring and conservative and PE does not generally like that. Also, I showed a lot of energy with the recruiters and they became my champions and made sure i got in front of all the shops.

Was your IB stint in the west coast, and if so, was your BB firm either UBS LA or CS LA, because I guess both of those would guarantee your entree into PE.

Also, were you asked much about undergrad GPA and academic performance/school, or was it mostly about what you did in IB?

If one were to get a internship at PE shop, would it lead to a full-time position (similar to that of what a post-analyst from a i-bank would enter)? Similar Pay? If not, what would be the point of interning at a PE shop--other than learning about the industry--if the analyst/associate positions at those shops are only available to those who have 2 years of work experience in i-banking/conulting?

Through my experience I have found that 99% of PE shops do not have internships, except at the MBA level. Most banks hire out of i-banks, consulting (there are some that hire exclusively out of consulting) and corporate jobs (think GE, Disney).

If you do find an internship at a PE shop, I would look hard at the firm and see if its reputable because that can open some real doors for you.

I found an internship available for recent graduates, but it is at a smaller firm. Do you think it could lead to full-time position that is similar to a post analyst position? What criteria would you use to evaluate a PE shop?. I would really appreciate your thoughts on this matter.

Top tier was about 250K all in this year, based on buddies who received offers

Do you know how much entry level post-MBAs in PE make?

300-500, depends a lot on carry.

What fund size is that? Is it for the bigger sized funds?

I'm 2 years out of b-school currently working in private credit opportunities and was recently offered a position at a $1B PE shop in NY in a sen associate position. Cash comp of $275 and 50bps of carry. Does that sound like market?

Yeah, the 500 I mentioned was at the upper end of the curve.

Thanks gunboatdiplomat. I would imagine that they had prior PE experience.

Does the carry work on a deal by deal basis? and is it only on deals that they have orginated or all deals that they have worked on?

Is it common for someone to be entitled to keep the carry if they decide to leave the firm?

Sorry for all of the questions, but I'm thinking of negotiating something later in the year.

The carry is normally drawn from the buyout fund as a whole, which will normally be spread across several deals over the course of the fund. You generally won't keep the carry if you leave before the fund is closed.

Thanks for responding. This is very useful.

When do people generally start recieving carry? Is it when they start bringing in deals themselves, or is it linked to being a VP+?

currently interning at $18bb alternative asset company as part of the $1.8bb private equity / control distress fund. This company refuses to give offers directly to undergrads (2+ years ibanking), I am a junior at Ivy League school. Does Blackstone give offers directly form internships? (ie go to Blackstone this summer and try to get an offer).

FYI Pay for Undergrad Internship = 80k pro-rated, unreal. But hours are more banker (8:30-11+ most nights) but light on weekends.

80k for undergrad internship is good, seems a tad high though.

its very high. Didn't expect it, when applying was told "comparable to ibanking" but it is clearly 20k above i-banking.

If the firm gave offers I would accept one in a second, love the firm and the work, but unfortuantly only recruit after 2-yrs.

which is why i think a Blackstone may be a good idea. Does anyone know if they recruit out of undergrad interns?

You're making 80K in an undergrad internship ??? Does this position entail smuggling drugs across the mexican border ??

Seems like freaking lot of money to me for a pretty intern. I'm working as an analyst in a 15bn+ PE fund, and am barely earning more...!

Who knows...the kid might be the A-Rod of PE

"I'm working as an analyst in a 15bn+ PE fund, and am barely earning more...!"

there are only 3 (technically 2 since one hasn't closed yet) 15bn PE funds out there, and their analysts make way more than 80k a year...

top tier post mba this year has actually risen again. around 450-500 cash salary+bonus, plus 100-200k carry is now top of the range.

Agreed 450-500 for Associate cash seems high...with carry maybe...

I am considering a SR. Associate/Jr. VP Role (small 1bn fund)for 120 + all carry on your investments.

Can be risky, but carry could theiretically be worth huge $$$

really?

and a couple euro funds. lowest i know from a big cap (8bn+) so far is a bit above 300k plus 100-150k carry

the european salaries actually moved up like $30k over the last month as the dollar has plunged :-) they are now paid more in some instances than US guys, although london is also a way more expensive city...

Do you think the pay would be the same at a smaller shop with under 400 million under management? Also, how should one evaluate such a firm (very small and the only resource I have is their website)? Any help would be appreciated.

what if there are only 10-13 people working there and everyone has an MBA from a top 5 school? Does that matter at all (I was just curious because of the attracting talent comment you made)?

no such thing as top 5 mba thing. only H/S/W, insead in europe. and top talent means the top 2-5% of the class at these schools, not just the average student. Most top 5 school mbas are (comparatively) idiots anyway, this is why you still have harvard mbas going to Accenture...

10-13 people is a LOT for PE

for 400M, i was more thinking like 3 investment professionals, 2 partners and associate bitch

KKR or Blackstone run with headcounts well under 100, and they have funds 40 times bigger...

10-13 people is a LOT for PE

for 400M, i was more thinking like 3 investment professionals, 2 partners and associate bitch

KKR or Blackstone run with headcounts well under 100, and they have funds 40 times bigger...

do you think after doing an internship/becoming friends with a partner he/she would know would be able to get me an interview at KKR/Blackstone? (I am assuming that this might be possible since people know each other in the industry.) Or are you saying that since they manage~400/have 10-13 people it is not a credible shop (I can't tell if they are "top talent", but all the partners have H/S/UofC mbas). I don't know much about PE and I am trying to learn as much as possible, so thanks for your feedback.

not impossible, but KKR/BS run pretty standard recruiting processes. networking there is (arguably) less important than at smaller firms, vs. just having gold plated resume... i guess using your pe partner as referral isn't much better than using recruiter...

How would you go about it? Would you just ask him or let him know what you are trying to do and then wait to see how he reacts? What if he offers you a job/internship at his shop instead? How would you turn it down politely?

just ask him.

if he offers internship, my advice actually would be to take it. PE internships are hard to come by, and it's not like you are likely to land one of the 2 spots at Blackstone anyway

fulltime, well, i guess the moment you turn him down you sorta take a chance on straining your relationship... can't be helped i think...

for your advise

Do most ibankers go to PE or bschool after their 3rd year? I heard you can do career in pe while only 2-3 years in ibanking.

top tier pe firm - 200-250k middle market firm - 180k top tier middle market firm - 200-250k plus carry (10bps)

Can anyone recommend top tier healthcare PE firms?

Interesting, any of you guys analysts at PE shops?