Total compensation at Financial Technology Partners?
Okay, Holy f***. Is FT Partners' base pay seriously $140k? I understand that the bank had some problems with retention in the past because of insane responsibilities/work given to incoming analysts, but this is just insane. Anyone have an idea of what the total comp, including bonuses, is at FT Partners for AN1/2? What are the associates' figures looking like with bonuses? I'd assume we would be nearing $400-500k. VPs? This puts FT Partners as one of the highest paying firms on the street, but still wouldn't top CVP's 200k A2A bonus (if you even want to do IB long term).
Also, yes I am a college student. Assuming a 100% bonus like at other EBs, Idk what I would be doing with that much money as a 22 year old. And honestly, idek if I will have the time to really enjoy that money too. So as a serious question, would you sign your life away for this much money? I'm considering it, M&A investment banking is going to be tough everywhere. Thoughts? Someone save me.
My dude, life isn't all about money
LOL! Says bro working in ibanking.
Heard FT Partners have very technical interviews, as they do a lot more modeling and projections than pitch work. Tough life as a banker there too ngl. I would honestly rather have less exhaustive work and make $20-30k less a year than work at FT Partners.
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Interviewed here -- their research department does all the pitching. So live deal work is all analysts do.
The pay is undoubtedly one of the best right now, but the firm has always struggled with culture/fit issues with many of their juniors leaving before A2A or before their first year finishes. From my experience, people end up working 100+ a week with most of the hours requiring engagement/sharpness. There's alot of "on" time for the hours you put in if that makes sense....
Ultimately, the trade off is WLB for pay. Really depends on the type of person you are and your tolerance
Source: Used to work there
As someone who exited out, did you notice any improvements the firm was making or trying to do? Also, what do you remember the pay for associates being? Idk if I want to do IB long term or not, and whether its worth it financially
I don’t think so, close buddies have pay which is roughly in line with street and actually quite below the largest increases this year (centerview, gs, lazard etc). WLB is also shocking..literally 100 hour weeks for a 30-50m sell-side that went nowhere
Below street? Even after their pay bumps? That must not be accurate
I said roughly in line with street, but well below the banks which pay the most in the street after they gave the largest increases this year (lazard cvp gs etc)
Basically FT’s comp is pretty standard but the WLB is very off (from when I’ve seen my friends come home). It’s one thing to bust your ass over a large fintech deal like square acquiring affirm, but to do it over a 50m sell-side is quite taxing imo. But then again, if you’re really into the middle-market space its all good
nice
With the new bump in pay, would anyone take FT Partners over CVP/MOE/PJT or BB offers like GS/JPM/MS? If not, where does FT Partners land? Would you take over GUG/LAZ/PWP
I know the place is a sweatshop but heard it's still a great place that crushes it in fintech
Bump
Close friend of mine said he has had such a great time recruiting for FT Partners so far. Think he is on his 3rd or 4th technical. Probably one of the smartest kid I’ve met who genuinely loves fintech but even then it’ll be tough for him to decide between here and a place like Centerview. Will keep you updated on where he goes!
Interviewed for GUG/LAZ and a few other BBs last year, and from my experience the interview questions at ftp were significantly more complex than what I found at the other banks. A lot of questions regarding complex leveraging and deleveraging beta as well as coverage based questions on how the fintech industry will transition in the next 5-10 years and why.
With the rise in pay and its selection process already pretty robust, I can see the bank growing extremely quickly. The next year will be an indicator in seeing if the reputation and pay/bonus of the bank will beat out other top tier banks.
respectfully, no one in their right mind is choosing FTP over any EB/BB
The pay gap between the EBs you mentioned is probably pretty marginal. I also don't think anyone sane is taking FTP over GS/MS.
The pay is great but I don't think it makes sense to optimize for 20-30k more pre tax in your first job at the expense of brand name, exit opps (I.e. future earning potential).
I would consider taking them over a UBS/DB or a the MMs. Probably not Jefferies since they're not bad at tech and also pay good.
30k more pre tax on base is equivalent to +60k-70k total comp Analyst 1. That's the equivalent cost to a year of college tuition or another person's annual salary. This will additionally hold through with associates and above.
Placing that into perspective, the pay gap is not marginal.
That’s a good point. The way I think about it, I don’t see value in making a meaningful sacrifice in brand to make 60k more off the bat
My assumption here is that you can make up for that gap by going to a better brand shop and increasing future earning potential (eg better exits). Of course this only holds true if you’re going to a shop with meaningfully better brand (e.g. BB, EB, Q, LionTree, Raine and the like)
BofA tech is probably the best non GS/MS/JP bulge in tech so no. Citi isn’t a standout in tech but still global name and they’re growing their tech platform so hard to compare. Depends on how much you like Fintech, what exits you’re going for, and how shit of work life you’re willing to tolerate
BBs cover wide tech groups and industry verticals outside of fintech, so it's difficult to compare ftp to BBs like Citi/Bofa that leverage cross coverage relationships to secure deals and mandates in the tech space.
That said, UMMs like Jeff/HL work more closely in deal space to ftp. From my knowledge a significant amount of these mandates are given to ftp with many firms highly valuing specialty and track record in fintech. Products like payments and insurtech are company types that not many firms have deal experience with.
Other than that Jeff tech is a beast in the broader market and is a good place to be right now. Personally I would place Jeff and ftp above HL/WB tech and mid BBs.
Why is everyone trying to justify why its fine to make less money??? This is a hard job and we deserve to get paid. At least the street is wising up and finally figuring it out. Why FTP gets dubbed with the sweatshop moniker is beyond me. If you're not working hard then you're not learning enough. Kudos to FTP for stepping up flexing here. I can't say for sure how this would impact my decision to work there over someplace else but it's major factor for sure. $$$ talks and if you're gonna lateral then may as well do it from the highest comp on the street.
I’d work at FTP
What’s FTP potential to be like a Q? Industry focused banks
May I PM you? I am interested in FTP, have an incoming interview.
The article regarding the firm's pay raise was published in Mid February 2022. The FNLondon article is behind a paywall but I've attached the text down below.
Boutique FT Partners sets new bar with $140,000 starting salary for junior bankers
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A boutique investment bank run by a former Goldman Sachs banker has just upped the ante on junior pay as the battle for talent continues.
FT Partners, an advisory firm focused on the fintech sector, has rolled out a pay rise for its analysts that will increase starting salaries from $100,000 to $140,000 in the US and to £85,000 in London, according to people familiar with the move. Second years will now be paid $150,000, or £95,000 in London.
The bank has also rolled out pay rises for associates, which are now paid salaries of £120,000 in their first year, £140,000 in their second year and £150,000 after three years.
The new salaries put junior salaries at FT Partners, started by former Goldman Sachs banker Steve McLaughlin in 2002, around 30% above its larger Wall Street rivals. Bank of America, Citigroup, JPMorgan and Morgan Stanley have all hiked entry-level salaries twice since March last year, but none has gone above $110,000.
McLaughlin confirmed to Financial News that his firm had raised salaries across the board, as well as some of the numbers.
“We have always been one of the highest paying, but it has been under the radar,” he said. “As CEO, I recently decided that we should be more visible on our junior banker comp, making it the highest on the street for the best performers. This is not because we have retention issues, but to simply reward the most talented, hardest working and best performing bankers on the street.”
Before FT Partners’ move, which is effective from 1 February, the highest paying investment bank for juniors was boutique Centerview Partners, which increased entry level pay from $90,000 to $130,000 in January.
McLaughlin said that the pay rises were one part of a broader range of efforts to maintain employee well-being that will include a forthcoming ski trip to the French Alps for its London office, and — before Covid lockdowns — private concerts for staff by Pearl Jam’s Eddie Vedder and Snoop Dogg.
FT Partners has around 225 employees globally including 45 in London. McLaughlin set up the boutique in his San Francisco apartment 20 years ago, The Wall Street Journal reported, when the financial technology sector was nascent. He was previously head of financial technology investment banking at Goldman Sachs.
FT Partners made in excess of $600m in revenues last year as deals in the sector have surged, according to a person familiar with the matter.
A burnout crisis in the junior ranks, highlighted by a leaked presentation by a group of 13 analysts within Goldman Sachs’ San Francisco technology banking team in March, has sparked a flurry of pay rises across the sector as banks have scrambled to stem an exodus of analysts and associates.
The Goldman Sachs presentation highlighted declining mental and physical health as working weeks stretched to 100 hours, with one respondent describing it as “inhumane”. The bank has increased junior hires and will look to automate more grunt work typically carried out by analysts and associates.
JPMorgan raised entry level pay for a second time in January, bringing it in line with rivals Goldman Sachs and Morgan Stanley with $110,000 salaries for first year analysts and £70,000 in London. Later in the same month, Bank of America increased analyst pay to £67,000 for first years and £80,000 for those in their second year, FN reported.
FT Partners has increased the size of its analyst class and took on an additional 30 juniors in July. It also has a 6pm ‘pencils down’ policy on Fridays and offers juniors one full weekend off a month.
“Work-life balance is extremely important and we are hugely focused on it. A happy team makes a great company perform for its clients,” said McLaughlin. “But make no mistake about it, banking is not for everyone – it is a challenging job, requiring some level of sacrifice and commitment.”
Am I reading that correctly? $600M for a headcount of 225? Isn’t that the highest per capita figure on the street right now? Wow has FTP came a long way…
Yeah, mainly because of their ridiculous valuations their rachet always kicks in. Probably have the highest deal fee % on street (5-10%)
Also pretty wild because Steve owns 100% of the company - no other partners.
Not sure what the bonus is or will be in 2022. Do we know? The recession is being leveraged to lower the bonuses. Kinda sad…
Bump
People at FTP, how much you clearing with bonuses? What is associate salary? Are the hours actually 100+?
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