PE salaries?

HiB's picture
Rank: Senior Monkey | 92

A job in PE seems to be the ultimate goal for many bankers or M/B/B consultants. I would guess the salary has a lot to do with this...

So what would be the salary (base, bonus, sign-on) for a job in PE?? Both for out-of-college analysts, as well as for a former-banker associate role?

Anyone with experience or insight is welcome to comment! Don't forget to include the specific PE firm and region "your friend" worked at!

Thanks for sharing your info!

Comments (15)

Jun 3, 2009

There was an article on PE Hub in October 2008 that had some specific numbers from Glocap and Thomson Reuters' 2008 PE Compensation Report.

Here are the numbers:

Firms with $2 billion to $5 billion under management in 2008/9:
Analyst: Base 65-95K, Bonus 70-100%
Associate: Base 80-125K, Bonus 55-125%
Sr. Associate: Base 130-175K, Bonus 60-140%
VP: Base 160-225 Bonus 75-185%
Principal: Base 200-275K Bonus 75-250%
Partner: Base 300-600K Bonus 100-325%

PE firms with 0-$300 million under management.
Analyst: Base 55-75K, Bonus 25-75%
Associate: Base 70-90K, Bonus 50-80%
Sr. Associate: Base 110-135K, Bonus 30-100%
VP: Base 130-155 Bonus 40-110%
Principal: Base 150-200K Bonus 35-125%
Partner: Base 200-350K Bonus 40-110%

Compensation for venture firms with $2 billion+ under management.
Analyst: Base 65-90K, Bonus 25-75%
Associate: Base 95-125K, Bonus 50-100%
Sr. Associate: Base 130-160K, Bonus 60-100%
VP: Base 175-215 Bonus 60-100%
Principal: Base 200-260K Bonus 75-120%
Partner: Base 425-525K Bonus 85-125%

Jun 3, 2009

Thanks for the numbers model 21, very interesting!

Just to be sure, those numbers are for 2008, so the effect of the financial crisis is (partly) taken into account, right?

On that same note, would it be correct to assume that bonuses in PE are less subject to change? Just because there's less government involvement and less media attention in PE than in IB.

Thanks

Aug 13, 2009
model21:

Firms with $2 billion to $5 billion under management in 2008/9:
Analyst: Base 65-95K, Bonus 70-100%
Associate: Base 80-125K, Bonus 55-125%
Sr. Associate: Base 130-175K, Bonus 60-140%
VP: Base 160-225 Bonus 75-185%
Principal: Base 200-275K Bonus 75-250%
Partner: Base 300-600K Bonus 100-325%

Shouldn't you get a significant bump from IB Analyst to PE Associate? I figure... Analyst1-70K, Analyst2-80K, PE_Associate1-110...

is that wrong?

Also, what is the typical sign-on for PE? Reason I ask is, if someone is starting for an immediate position and has to forgo their IB bonus this should be included in the sign-on. So say the sign on to make whole on forgone bonus is 70K, and standard PE sign-on is 25... is it reasonable to expect a 95K sign on bonus? Is there a standard range for pre-mba PE sign on?

Jun 3, 2009

following a 2 year investment banking stint, do most start off as an analyst or associate after making the move to PE?

Jun 3, 2009

Some firms only have associates (pre-mba associates), others have analysts. Everyone I knew who went from banking to PE received the title of 'associate'.

model21/glocap numbers are pretty spot on.

Jun 3, 2009

I think the question that needs to be asked is "How much does the average LBO manager make?".

As we all know, salaries in Investment Banking, Private Equity, and Hedge Funds are low. It is the bonus/productivity that makes you the bucks.

Jun 3, 2009

What about the compensation packages at the really big firms like Blackstone, KKR, Carlyle etc. ($20+ Bln AUM)?

According to the following post, it's MUCH higher
(figures for 2006 comp)

//www.wallstreetoasis.com/forums/pehf-analyst-salary...

"first year at Blackstone in 2006: $325K all in
second year at KKR in 2006: ~$425K all in
take these data points with a grain of salt; but yeah, megafunds pay well"

Jun 3, 2009

2006 is long gone dude. It might be a bit higher than the numbers model21 posted, but I'd find it hard to believe a 1st/2nd year at a megafund making anywhere even close to that (2006 numbers).

Jun 3, 2009

on how the fund does. If you are at principal level and higher the 20 part of the 2/20 is where the big bucks come from and that is why everyone wants to go to PE/HF.

Jun 3, 2009

i would think a good chunk is reinvested back into the funds, so that portion varies and is locked up for a period of time

Jun 4, 2009

The bonus numbers for VC are way too high.

Jun 17, 2009

as an undergrad straight out of college working in a mid-market PE, the salary and bonus are comparable to IB or any other BB entry level analyst job. although, the prestige of the firm's name might not be as up there

Aug 14, 2009

Personally,

I did not get a signon, though I did get full relocation (which I needed). I know another guy who got 5-10k, but nothing huge. My guess is this is pretty standard and that signons are more for people out of college than anything else.

Marcus, it really depends on the fund. I think the 80-125k base with 55-125% bonus sounds about right to me. PE is a vast, vast world, so unless you're only thinking about megafunds, these numbers look good.

As for the true-up for a foregone bonus, some places will make you whole, others won't. I would never expect to be made whole for the entire bonus (heck, its only mid-August so you've only accrued a few months worth of bonus). You may see some sort of partial recuperation. I know a guy who left in the Spring of his 2nd year and wasn't given anything by either side of the table.

~~~~~~~~~~~
CompBanker

Aug 14, 2009

Im on a calendar year bonus cycle. So if I were to leave in Sept/Oct, I'd lose a good 9-10 months of my bonus.

You mentioned someone you know who hadn't gotten anything from either side... does that imply that your current employer sometimes pays you a portion of your accrued bonus even though your leaving? That sounds really strange.

Aug 14, 2009
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