has there been adjustments to pre-mba associate salaries at pe firms as they did with banking? i know pe associates were offered ~100k a yr ago but that was before associates in banking were getting 125k as they do now.
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We haven't changed our compensation levels for pre-MBA associates since at least prior to the recession. Also, I don't think total compensation has changed for analysts at banks -- just a base/bonus conversion.
banking analysts/associates make at least 1x salary for bonus, not always so in PE. given the salary increase in banking, i'm starting to believe banking pays better than pe in a lot of cases.
Umm, no.
i must be getting way underpaid then. out of the ppl i know in pe, most make 200-250 first yr after banking, one or two a little more. banking you make 125+125 that's 250. possibly more bonus. am i wrong on this?
Not wrong, but misguided... or atleast thats what I think.
The banks paying 125+125 PE shops where you're getting 100+100. So Joe Associate with the offer of moving to PE in a 100+100 role, isn't faced with the choice of getting 125+125 at his bank. You're comparing a BB IBD Associate vs. a MM PE guy who likely didn't come from one of the BB. So he didn't have the option to stay on at 125+125.
If you're getting 125+125 as an associate, likely the PE options you have available to you are greater than 100+100.
There are obviously exceptions abound, but it has more to do with the firm you're at. Im probably one of them. My first pays above street and within my firm I get top bucket. Yet I've primarily gotten interest from MM PE shops whose comp is not competitive with high paying PE shops.
It sounds like you're in the same situation. Which I can relate to, because for me, unless I get a megafund offer, I'm taking a pretty significant hit on my comp. And as luck would have it, not coming from a top BB, the megafunds don't have much interest in you unless you can somehow cajole your way into a first round.
This isn't a fair comparison. You can't compare a pre-MBA associate in PE to a post-MBA associate in banking. At all equivalent levels, PE outshines IB.
I disagree with Comps statement. Pre MBA PE assc is comparable to Post MBA banking assc. Reason being is that I could just do the promote track at my bank and be in either position at the same time. After that it gets fuzzy due to whether or not you need to get an MBA before continuing as a Sr Assc/VP in PE
You will be making more as a banking associate for the first two years compared to a PE associate (assuming ~225k). What you're forgetting is that even if salary+bonus is 225-250 for a banking associate, they have that fat 45k signing bonus that PE associates don't get. However, after those first couple years, I think the comparison isn't close anymore due to obvious reasons as well as the arrival of deferred comp for non calling officers...
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