What level in Corp Dev after 2 years banking + 2 years PE?

If I wanted to move into corp dev / strategy after finishing my PE associate stint (with or without an MBA after) what level would that equate to within an F1000 or Middle Market hierarchy? Would this be an almost certain paycut from the ~$250-300 a PE associate makes or are there any roles with comparable comp?

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Comments (42)

Sep 30, 2018

Interested as well!

Oct 1, 2018

this one is kinda tricky. on paper you only have 4 years experience which probably translates to senior analyst as far as HR is concerned. obviously you have high quality experience and your comp is a multiple of what most SFA receive given you're coming from PE. you would really need the hiring manager to push for you to come in at a higher level - managers typically have 6-9 years experience and sr managers/directors have 8-10+ years experience depending on their backgrounds. either way, yes you should expect a haircut if 250-300 is your starting point. this is the trade-off when switching to corporate finance - comp vs. better hours.

Oct 8, 2018

Have seen multiple (3+) in this timeline come in at a director or senior director level.

At a minimum you should be a senior manager.

If they imply any less laugh and walk away.

Oct 8, 2018

100% agree. If you have that experience and take a senior analyst role, you are making a huge mistake.

Oct 8, 2018

I agree somebody with that experience is crazy for taking a SFA role. My point is HR doesn't differentiate between IB/PE and will only see 4 years of finance experience. Therefore a candidate really would need the hiring manager to push his application through the process and get a sr manager or director title approved to even be remotely close to competitive on comp.

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Oct 10, 2018
td12:

I agree somebody with that experience is crazy for taking a SFA role. My point is HR doesn't differentiate between IB/PE and will only see 4 years of finance experience. Therefore a candidate really would need the hiring manager to push his application through the process and get a sr manager or director title approved to even be remotely close to competitive on comp.

If HR is that obtuse then you need to look for a different conpany. Even at huge corporations that's not how a well functioning HR department looks at the world.

Oct 10, 2018

You're forgetting one thing - HR (or so called talent acquisitions departments) are almost always bunch of fucking retards, adding zero value to the company (or in some cases - negative)

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Oct 11, 2018

hahahaha if we all switched companies due to HR...

Oct 16, 2018

HR actually destroys value for a lot of good companies... so incompetent.

Oct 8, 2018

Director with $250 - $300K

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Oct 8, 2018

@Esuric, perhaps my F500 firm is a bit different and promotes more quickly, but is $250k-$300k pretty normal for directors? Our directors tend to start at $140k-$150k. It goes analyst>manager>director>VP>SVP for corp dev at my firm if it matters.

Oct 8, 2018

There's a huge variation in corp dev comp depending on the sophistication of HR. Some firms treat it as basically a finance function, comparable to FP&A and treasury and compensate it as such. Other firms are more sophisticated and require/demand a more technical skill set and recognize the market value of the strategy/modeling capabilities. With a PE background, you should only consider the latter type of firm. Honestly, you will be bored and dissatisfied if you don't.

That said, $140K for director sounds low to me at any firm. I can tell you that I was recently approached for a cop dev gig in NY (director) that offered $250k to $300k base with a point of equity on every deal. I wasn't selected to proceed in the process but it's a data point.

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Oct 8, 2018

Can you expand on the point of equity on every deal?

Public company?

Oct 8, 2018

Acquire company for $20M, you keep $200K.

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Oct 8, 2018
Esuric:

Acquire company for $20M, you keep $200K.

Bullshit.
Unless these are tiny deals, an investment bank might charge 2% of the transaction cost to advise on it. No way in hell is any decent sized company going to pay half of that to a single corp dev employee (on top of a sizable salary), let alone to someone with 4 years of experience.

Oct 8, 2018

You don't know what you're talking about. You've made a whole series of assumptions that are wrong and I'm not going to disclose confidential information just to make a point to some idiot on WSO. If anyone wants more detail/clarification on the role I'm referring to, please feel free to PM me.

Oct 9, 2018
Esuric:

You don't know what you're talking about. You've made a whole series of assumptions that are wrong and I'm not going to disclose confidential information just to make a point to some idiot on WSO. If anyone wants more detail/clarification on the role I'm referring to, please feel free to PM me.

Nope. You're full of shit.
If you were worried about disclosing "confidential information" you wouldn't have posted to begin with.
It's also incredibly unhelpful for a Pre-MBA PE associate who's trying to get a realistic sense of compensation.

The more likely scenario is that a headhunter with a sketchy sense of ethics oversold the position, or somehow you fell into the process for a role in which you were grossly unqualified.

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Oct 9, 2018

You're a clown and you don't know what you're talking about. I have to laugh at your comment that I wouldn't have posted a salary range if I really was worried about disclosing confidential information. Do you even know what confidential information is? You're also the main issue on this forum. Clueless, unappreciative know-nothing that doesn't accept the charity granted to him/her by more experienced, successful people.

If you knew how to talk (i.e., if you asked the question rather than make a belligerent accusation) not only would you have been given the clarification you're looking for, but you might have also been given the name of the recruiter in a PM. Now you get neither.

Enjoy the rest of your day.

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Oct 9, 2018
Esuric:

You're a clown and you don't know what you're talking about. I have to laugh at your comment that I wouldn't have posted a salary range if I really was worried about disclosing confidential information. Do you even know what confidential information is? You're also the main issue on this forum. Clueless, unappreciative know-nothing that doesn't accept the charity granted to him/her by more experienced, successful people.

If you knew how to talk (i.e., if you asked the question rather than make a belligerent accusation) not only would you have been given the clarification you're looking for, but you might have also been given the name of the recruiter in a PM. Now you get neither.

Enjoy the rest of your day.

Well put

Most Helpful
Oct 10, 2018

Whether that comp plan is real or not, I can't comment on. Offering incentives based on purchase price on the buy side is a horrible way to design a comp plan. You are basically guaranteeing that your directors over pay for deals. Not to mention one of the most important functions of a corp dev professional is to NOT do deals that don't make sense for the company.

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Oct 11, 2018

This is how the team is structured at my current firm. The BD EVP gets points on every deal and yes, he actively tries to push things through. The thing is, it makes sense because management is overly risk averse. They see the downside on every transaction while the BD team sees the upside. The result is that the CEO gets both perspectives and the CD team facilitates the process by quantifying each perspective.

Oct 11, 2018

Thats not equity, thats a finders fee.

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Oct 11, 2018

Im at a fortune 100 and our directors in CD do not make anywhere near 250k - 300k base... I could potentially see 250k all-in.

Granted our deal flow is a lot lower than pharma, healthcare & manufacturing companies... but still 250-300k is a large base...

Oct 11, 2018

It is definitely higher than normal, but he's also in NY.

Oct 11, 2018

This was a PE backed media company (small currently) looking to grow very rapidly. The CD director would basically be an arm of the PE fund. The role asked for deal sourcing, conducting diligence, valuation analysis, deal term structuring, presentations to PE sponsor, etc. Basically everything. A 1 man show.

Oct 11, 2018
Esuric:

This was a PE backed media company (small currently) looking to grow very rapidly. The CD director would basically be an arm of the PE fund. The role asked for deal sourcing, conducting diligence, valuation analysis, deal term structuring, presentations to PE sponsor, etc. Basically everything. A 1 man show.

So it was option B in what I mentioned above? Sounds like we're saying the same thing?
somehow you fell into the process for a role in which you were grossly unqualified.

Oct 11, 2018

I see, that gives more color and makes more sense about the comp now.

Oct 24, 2018

Also, first time hearing about a point of equity on every deal, but boy that would be a sweet gig to get. Really need to just complete 3 decent sized deals ($250-500M+) and you can pretty much retire.

Closest thing I've heard to that is spot bonuses each time you close a deal, but it's no way as sweet as the above structure.

Oct 24, 2018

You wouldn't be doing anything near 250M deals here. Again, it was basically a 1 person shop. The all-in comp range expected annually was like 600K to 900K, depending on performance. I didn't get too much detail because again, didn't proceed past first round.

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Oct 8, 2018

There was an excellent thread not too long ago that really expanded on what Esuric mentioned above - hell maybe he wrote it, I forgot.

In any case - all to say that corp. dev. / strat. varies WIDELY from firm to firm so it's a particularly difficult question to answer. All you can really do is gauge from a variety of responses. If it were my firm, F1000 energy company, you would likely be some kind of a senior manager (senior is a BS title add on honestly) and fall somewhere in the 150-225 number year one (don't forget RSUs, bonus, etc. above salary). Additionally, if it was a lean organization and you had the freedom to prove yourself, it could be a simple year to director (again, my firm in particular, and event actually witnessed).

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Oct 8, 2018

You'd come in as a Manager or Sr Manager at most F500s. And yes expect a drop off. Comp varies a lot, but base would probably range anywhere from 115-170 most likely depending on industry, size of firm, and location.

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Oct 10, 2018

Comps varies by size of the firm and industry. I know multipe people at 2 household F100 tech giants who did IB and started as Manager or IB and MM PE and came in as Senior Manager. Manager salary in 125-130's and Sr. Manager 150-165's. These are base figures, bonus on after tax basis is laughable.. PM for more info

Oct 11, 2018

Hey OP - I think best case would be coming in as a Sr Manager ( all-in comp at my company would be ~$190-210k).

I think it'd be really tough to come in as a Director straight from PE.

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Oct 11, 2018

Hey OP - I think best case would be coming in as a Sr Manager ( all-in comp at my company would be ~$190-210k).

I think it'd be really tough to come in as a Director straight from PE.

EDIT: I should have noted "Director at an F1000 company". I definitely think you could do it at a private company.

Oct 11, 2018

Just prepare to be underwhelmed.

Oct 11, 2018

It is so good to work in corporate in the states and get such high comps.
In asia, ibd analysts making 8k base fresh a month and 3 years experience in corp dev makes less than 5k even at f100 mnc

Oct 11, 2018

These 250+ comp ranges seem more like anomalies, I think even 200+ is probably less likely than not. I think the base of 115-150, likely more towards the 115 and then a bonus of 10-30% is more realistic.

Also, all the comments about HR not knowing anything are totally off base. Corporate jobs are not finance job - just because you make 200+ with 4 years of experience does not mean you're "worth" that in a corporate role. One might personally not accept a job because the pay is too low but undoubtedly it will be accepted at that pay by an equally experienced person. In fact, one could argue that HR is the smart one in the room by no over paying a junior person that thinks they are worth more than they are.

Exact same thing in law - you go in house you're taking in upwards of 50% pay cut.

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Oct 16, 2018

Disagree. A good CD team is critical and deserve the premium. Trying to go cheap actually destroys value for the company IMO. But of course it will be a downgrade on the pay from IB/PE at first no doubt because it's a different lifestyle, you do less hours etc... but choosing the right company and getting RSUs/options can make your overall comp pretty attractive if you're ready to commit to the place.

EDIT: There are a couple cheap guys that were hired last year and they bring in no value whatsoever which probably leads to missed opportunities for shareholders. Another consultant was brought on last month, a little more expensive and he's done more in a month than the others have in the past 12m.

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Oct 24, 2018

Senior analyst, pronciple analyst, maybe manager.

Dec 28, 2018
Oct 27, 2018
Dec 28, 2018