| Topic Name: |
Baseline Comp |
| Message Name: |
Makes Sense |
| Date Posted: |
04/10/2001 |
| In Reply To: |
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" |
| Message: |
That kind of thinking makes sense in my book. The dot.com craze got many of us hoping and believing that you could be successful overnight, but few things are that easy. It takes a lot of hard work, and forgoing a little cash in the beginning to lay a strong foundation, I am sure, is a discipline that ultimately pays off. Like going to a school with a strong basketball school where you might sit bench the first few years, but where you are guaranteed to learn the fundamentals, and learn them well.
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