To all you freshmen HF comp fanatic losers...
Go grab your lotion & tissues, this is gonna be a good one! The highest paying HF seats are where there's the highest AUM to IP ratio. In other words, high AUM low people. It's no surprise that the giant Tiger cubs are the one's with the highest ratios, but I'm pretty sure Tiger Global is like damn near $3bn per IP. None of you guys will be working there, BUT...WAIT FOR IT...the analysts who do work there in a good year probably make what your net worth will be when your 50, but in a single year. Average person on this forum will probably be worth $4-5mm by the time they're 50 considering inflation, plus were talking the world of HiGh fInANcE...
From what I've seen, comp is proportional to AUM:IP. Probably $2-3mm for analysts for the sub 1bn-500mm ratio funds, and then less and less as the ratio decreases. Comments, questions, concerns? Hope that satisfied all the freshmen on here...NOW PLEASE STOP ASKING ABOUT COMP EVERYDAY
Also want to add, a lot of people over estimate the actual fees that most HFs get. When you factor in founder fees ect. very few funds that arent factor/beta neutral get 2 and 20.
Most large SMs that run net long really only get 1 and 15, some have hurdle rates too. Ppl should think abt that when looking at AUM/IP.
The daily threads on max comp stories are so cringeworthy.
Maybe this question can be answered by googling the top 25 earning hedge fund managers of the year? I would think the top earners are the guys running the places who have like a few billion invested that they earn like 20% on in a year
I hear you thanks. I would think anyone currently interested in being a hedge fund analyst is prob on track to be a hfm one day and/or the people who get hired to be HFA’s are those who may want to be HFM’s one day. I could be wrong
Alternatively, you choose to click on those threads knowing what they're about. Would be the same as if you clicked on the "rank BBs/EBs" threads or the linkedin posts thanking people for the opportunity to apply. At that point, if you click on it and get pissed, its because you're looking to get pissed on purpose.
People like this are going to be around no matter what stage of your career you're in. Think about all the analysts in your class who were like "oh it'd be totally sick to work at x fund, the founder is such a legend of the industry" and the guy has no idea what this fund does. Think about all the Rx kids (and even MF guys) who exist to go to a distressed fund and then flame out after a year at Silver Point when they finally realize that these funds are not as badass as WSO makes them seem. At some point you just have to ignore and focus on yourself right.
I mean shit, I know MDs who borderline fetishize their clients in private, when they're not even in front of them.
"Yeah dude, these are guys are so sharp and just crazy smart" "Yeah dude, these guys are absolute animals"
Yeah dude, these animals have averaged negative returns over the last 5 years and haven't hired you in that period.
How do you find the number of IPs on a site like whalewisdom? It says number of employees under the Advisor info section, but thats back office + IPs -- how do you find IPs specifically?
Maybe in like form adv section 2 stuff? Or maybe just in other investor materials and/or linkedin
15 year olds on WSO: so you're telling me there's a chance?
First and foremost, to get paid you need to be in a seat where the founder/PM actually pay you. Plenty of them don't.
Comp is good
What does IP stand for?
Internet provider
Intellectual property
internet porn
Indigenous Persons. It is a key ESG criterium for many LPs.
Investment Professional
How much do you think a partner at Tiger global makes?
10
bout tree fiddy
Dirty tree and a turd
Carole Baskins would know
Currently starting out in the industry and am not nieve enough to think that I'll be making 7-8 figures in the next 5-10 years. I'm curious as to what a reasonable comp expectation would be for credit funds with $1-5 Bn AUM.
My expectations are to be sub $200k for the first 1-3 years (potentially sub $100k in years 1 and 2), maybe be at $200-250 in years 4-5, and then anywhere from $250-500k for years 6-10. After 10 years I'd like to think I'd have a shot of pulling in more than $500k but am not sure whether even getting to $500k in comp is realistic for 40-50% of people in the industry.
Are these unreasonable assumptions?
Your expectation is more or less spot on if you are doing "well" for the first 10 years. If you survive past 10 years, you'll have a chance at over $500k. If you are still in the business at that point, you are almost certainly in a risk taking or decision making role at a fund.
Like other user said, depends on making it that long. You'll definitely need luck on your side.
These are realistic figures from what I see.
Sub $100k for first two years is a bit low though. Likely you will be making $100k-150k with some bonuses or sign-on put in.
After that it depends on your responsibilities and pnl, and of course fund performance.
How much do you think analysts at Melvin and D1 made last year? I made $200k big boy RX bucks :))
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