Slightly Underpaid - Should I leave?
Working at a UMM shop in NYC/SF ($7bn latest fund size), I do like the people and the hours are alright (9-9 non-deal, 9-1 deal time). Exposure and culture at the shop is good (though nothing amazing).
However my comp is $125k base, $125k bonus $250k total (I was rated top) and can't help but feel that I'm getting underpaid compared to peers at most comparable firms making ~$300-$350k.
This program is a two and out so I'll either be going to MBA next year or looking for a senior associate position anyways but was wondering if I should start the search now given how hot the lateral market is (or from what I hear). Or maybe I'm thinking to near-sighted, would appreciate anyways opinion/advice.
Bumping for you, cause I have no clue
Why the MS? Just trying to get you help man?
OP here - didn't MS so not sure who did
Heres a silver banana to offset ur ms. Some people on wSO is weird asf they sometimes just do it for no reason
250k is nothing to sneeze at, regardless of what your peers are earning. However, as you said, if you're not getting what you want out of the relationship then why stay? Resentment is a bad quality as it often bleeds into your non-work relationships. At the same time, it doesn't sound like you'll be staying there that long anyway. If you moved to another shop, how long do you figure you would stay there for? Would you cancel your MBA plans? If I was in your shoes and I knew I 100% wanted to do the MBA then I'd stick it out at my current firm and just leave for the MBA. If I wasn't sure if I wanted to do the MBA then I'd lateral to somewhere with more pay and upward trajectory.
I'm always generally 75/25 on decisions where relatively small amounts of money are involved...meaning, a lot of junior folks care too much about relatively small comp differences and I don't think that it's necessarily worth focusing on. If you like the people you work with and are learning, that's the most important thing. With that being said, I also don't subscribe to the idea that money doesn't matter. 50-100k in comp, placed into an index fund now, at retirement could be worth a lot, so it's worth placing some emphasis on comp, especially if you think you're being significantly under-compensated.
Now to your specific situation, $250k in NYC for an UMM shop does feel a little light, especially in light of all the recent comp increases across companies. You should probably be low 300s or at least have gotten a more outsized bonus this year. With that being said, it sounds like hours aren't terrible and you're top rated, which means you'll get a good rec from folks if you need it. It sounds like you have a year under your belt and that you're for sure going to have to leave given it's a 2 and out program, so the only real option you have is to start thinking about next steps, regardless of pay. If business school is in the cards, start pursuing that and make your intentions known as soon as it makes sense to do so. Regarding the lateral market, you should always be entertaining lateral offers, especially in a hot market and if you're not in love with your shop. Given your background, I'd at a minimum hit up all the recruiters and if you have your eye on any specific shops, starting reaching out to connections for coffee chats.
Agree with harveyspecter above in that an UMM NYC associate should be getting at least 325 all in. If you're really at an UMM fund why aren't they paying you out to street?
Aren’t most MFs still in the 300 area with some that go much higher? Would imagine UMMs are similar.
I think 300 should be a bare minimum but these days I'd expect at least 325 if I were rejoining a MF as a 1st year assoc.
You should stick it out. The amount of money that you may or may not be underpaid isn't worth burning a bridge over. Any associate position / your two years there are about learning and putting a stamp on your resume, not about making money. Plus, the amount you're arguing is small anyway, it's not like they're screwing you out of a $1mm bonus or something. The money comes down the line - try to look further out.
Have only ever heard of UMMs/MFs at 300 or 300+. Surprised to hear this.
Did you sign your offer knowing it was 250 or did you think you were going to get 300+?
Are you surprised that you're only getting $250k? Generally when you sign the offer they guide you to a number and beyond that, associate PE recruiting is so standardized that everyone pretty much already knows the comp bands for each firm in the UMM/MF space. Like HIG and TPG are on the lower end while Apollo and Centerbridge are obviously on the top end etc. Advent is $300k, KKR & BX a touch higher etc etc.I just feel like none of this should be a surprise given comp is pretty transparent and well known at these stages per fund.
Yeah a bit surprised.
I was guided toward 275k+ with ~120% target bonus of base (though didn't get that in writing ) with the caveat that generally 100% is minimum based on overall fund performance. And yet here we are with our fund probably performing in the top quartile with a couple of great exits (4.0x+ MOIC)
Yeah leave. You've been shafted and who knows if they're telling the truth about you being top bucket but if it is true then it's even worse. Right now its a red hot market for junior talent like you with around 3-4 years of experience total w/ 2 years banking + PE. You are the target of all the recruiting that is happening right now. There's a good chance you can lateral up to an even better shop in this current environment. Reach out to the usual HH suspects and let them know you're open and highly motivated to move, you're top bucket and best in your associate class, did great deals, fund's doing great, but got shafted on comp.
Sounds like Veritas
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