| Topic Name: |
Baseline Comp |
| Message Name: |
PE Comp Packages |
| Date Posted: |
04/09/2001 |
| In Reply To: |
I know that you cannot get much more opaque than information about compensation levels in PE, since it really varies from firm to firm. I have seen posts in the past that talked about what associate level comp might look like, and I know that glocapsearch used to post information--so I do have a sense. But does anyone have any opinions on what should be a baseline (or floor) for associate level comp?
Thanks in advance. |
| Message: |
I recently broached this topic with the vc I'm interning for citing the infor. provided in this message board for college graduates (associates can refer to MBAs and nonMBAs) with 0-2 years experience managing one 600 million+ fund.
The associate's reply (he was a college graduate, majored in Finance/Marketing) was that there are two types of people in PE:
1. the type who want a steady, secure salary and who usually work for big firms but tend to only focus on one aspect of the PE cycle. These guys/women can earn upwards of 100k + bonus - 200k + bonus, perhaps more I suppose if you can negotiate a contract that gets you a piece of the action/deals but that's unlikely. Usually only the founders/owners manage to hit paydirt.
2. The ones who want to be "successful" as he put it. These people will likely work for a smaller firm where they can learn and actually work in all aspects of the cycle. Furthermore, these guys can get a piece of the action if their work and sales leads becomes profitable and the vc sees a successful exit. So, the upside is far greater though the initial pay may be smaller in comparison.
It sounds right. What do other people think?
-signed "new to the pe game"
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