This is the pay at Blackstone in London
Just looking at this article which is just over a year old now:
https://www.efinancialcareers.co.uk/news/2020/07/…
Is anyone else somewhat surprised that the average partner only earned £789k? The article states that this is inclusive of carried interest which to me seems very low. At a fund of Blackstone's size (both US PE and RE funds are $20bn+ and the EU RE fund is over $10bn+) I would assume that carried interest would stretch into the double digit millions for partners whereas this seems to set the ceiling pretty low.
Anyone have any insight to this? Are my expectations for MF PE pay and carry just way off?
That's not really a credible source so ignore..
Efc‘s numbers are total bullshit generally
EFC had a report on our firm two years ago and the numbers didn't line up.
Would agree that efc isn't a legit place if you're looking for comp data but companies house accounts filed for blackstone in london says that the highest paid partner there made 1.5 million dollars including carry. Surely the companies house filings couldn't be wrong?
Very generally speaking, CH filings meet the minimum legal standard.
But, as we all know, executive compensation has complex components to and these documents may not reveal the full package we receive. There are a lot of things CH won't consider or that aren't filed.
But to be honest, I don't know how our UK opco would file CH documents in relation to UK staff income.
Fuck that I'm OUT
Entrepreneurship here I COME
Companies house only refers to the UK LLP.
Couple of issues with that:
-BCP is a US/European fund, with no carry economics running through the UK LLP whatsoever
-the fund itself will be based on Cayman, the holding companies of the portfolio companies in Jersey/Guernsey/Luxembourg/… - none of this is any part of the UK LLP structure (ie companies house) whatsoever
-Partners/MDs/Principals will have employments with both UK LLP and US LLC. None of the LLC economics are reflected in the UK LLP statutory accounts.
I suspect what is running through the UK LLP is the UK (or Europe) share of GP economics excl. carry, ie management fee less running costs (salaries incl. for juniors and back office, office rent, …). This is then being calculated pro rata on the “partners” of the UK LLP by EFC.
Looked at the WSO salary report for BX and their An1 & An2 bonuses seem to be very low too. They averaged $41.7k and $48.8k. Even moving up in seniority we see that pay seems subdued vs some of the other MF PE firms. I thought BX was supposedly one of the better paying firms in the industry. Are people lying on the WSO salary database?
I actually heard people on WSO talking at least once about a Blackstone discount, similar to the GS discount.
See I had heard the complete opposite - people don't leave BX because the comp is insane. I must be wrong
These numbers are wrong. BX pays in line with / at a slight discount to peers. It is true however that base salary is low so comp is very much weighted towards bonus season.
Do you know if this applies to REPE at BX also, as in discount to say KKR/Carlyle/Starwood comp?
This is obviously BS. No BX partner is getting <1m, I guarantee you that.
Other above are likely right about this source being crappy and excluding certain portions of comp, but I will say that finance in Europe on the whole seems like a massive L.
At my top target, the internationals (namely from London, closest comparable) are blown away by the fact that American IB analysts are paid ~3x all-in what they are in the UK, and London is equally or more expensive than NYC.
There’s a fundamentally different culture and tax code in the US toward “superstars” and it’s one of the reasons for all the shit we get I still think America is an amazing place if you want to work hard and are smart.
It's more, but it's not three times. At the current exchange rate for bases across most banks, it's £60k/$82k in London (with some of the EBs at £70k/$96k) versus $100-110k base in NYC. Bonuses in the U.S. are, granted, a little higher as a % of base salary. But basically London salaries, pre-tax, average 70-80% of NYC's all-in. Post-tax that actually narrows slightly at the junior level to ~80% of all in.
And at current GBP-USD rates, New York is significantly more expensive than London, even with the exchange rates slightly favouring the £ over the past year. For accommodation (which is a big expense for analysts) and food it's in the region of 30-50% more expensive, although city travel and clothes, electronics, etc. are often cheaper. Then you've got "soft factors" - slightly saner hours, far better culture re. vacations, better access to places to vacation, cleaner city, etc. with a trade-off that London sometimes feels like a collection of sleepy villages compared to NYC. I would genuinely suggest that $82k base in London is a better deal than even $110k in NYC, especially when you consider WLB. Granted, the equation changes if you're earning NYC salaries in a secondary U.S. city.
Think it’s mentioned above but wouldn’t you take a 20K USD cut (more if not considering EBs maybe) for 25 days holiday and overall culture maybe?
Ok I’m just gonna say this - London hours are not materially better than NYC hours. In fact, at many places - banks and funds - the hours are actually worse. I’m one of a handful of folks that has spent 4+ years in both NYC and London, 2 firms in each location.
That just means they have great tax lawyers
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