Is my comp in line with ASO pay?
Ignore WSO title. Currently an Investment Associate at a Hold Co based in a HCOL city. Background: spent a little longer in IB (4 years) than most peers / I'd like, but was fortunate enough to come over to the buyside earlier this year before the massive layoffs across banks took place.
Had a few other options in the pipeline (traditional buyouts, growth equity, secondaries, GP stakes investing) but ultimately decided to take this role primarily due to the following reasons:
- Pay: 170K base / 340K all-in. (vs other options 120-130K base / 240-260K all-in)
- Role & Level: because I wasn't able to exit the sellside after ~2 years in IB, all other options mentioned above considered bringing me as AS1 vs experienced AS (I am aware this is common, reasons being different skillset and others).
- Job Security & WLB: I am not on a 2-year contract and it's not at-will employment. I work 50-60 hours/week. IC process much less stressful
I am a few years older than my average peers and am married, which is part of reasons why I didn't want to go through a 2-year PE associate program at traditional PE shops that have Associates much younger than I (understand age doesn't mean much in our industry). I don't have the same drive given where I am at in my life.
When it comes to pay only: am I in-line with those who are in traditional PE firms (across MM / UMM / MF)? Or should I be comparing myself to current AS1's (given I got 2 years "demoted" from moving to the buyside) or Sr. AS' pay (aka my analyst class)?
Can you PM the name of your firm? Asking for a friend
Also curious
Looks like you're in-line with MM AS pay, but below MF AS pay (360-400K all-in)
Ah yes, the IB analyst intel into PE strikes again
What do you mean no contract but not at will?
Also yes you are in line. Outside of one time Covid bonuses and some of the well known top paying shops AS1 is not 400k
Thanks for your input.
I meant to say my employment is not a 2-year contract like 2-3 year associate programs at typical PE firms. My employment doesn’t have an expiring date if no promotion. But I guess I am wrong to think that i am not an at-will employee.
Cool also everyone is at will regardless of contract - a true guarantee contract only comes into play at very senior levels when you're bringing real business
Sorry to not answer your question, but super curious - what is an investment associate at a "holdco"? What does that mean? Thanks in advance.
Is that the same as an investment firm?
Odd way of describing an investment arm / M&A vehicle for a large corporation in a given industry
Sounds like a great gig at the junior level - pay is way above what a MM AS1 gets paid ($250K all-in) and probably at or above UMM (know many UMMs that pay $300K - $350K all-in). WLB sounds amazing as well. Not sure how this pay scales over time (annual bumps as well as for each promotion) and not sure what carry looks like for a HoldCo. Otherwise it’s a great gig, congrats.
Thanks very much for your input and additional color. Hours and culture are great. Another thing I forgot to mention is how I get to learn so much about sales & operations along with turnaround / go-to-market strategies at one of my PortCos.
Pay/career trajectory (barring no job switching) -- I don't have a clear view on this but if I have to guess based on information I have: VP/Principal (or whatever equivalent title) promotion in 1-2 years ($200-300K base / $600K all-in best-case scenario). No carry but potential equity stake in PortCos if we ever IPO.
Given the c-suite folks at one PortCo make $300K-$1M base (CFO/CEOs only), I'd assume my pay (investment professional) will be on par with them once I reach VP/Mid-senior level, despite my lack of YOE vs PortCo c-suite's (5 vs 20 years).
What's the difference in comp in an IPO scenario vs regular sale? Wouldn't most portcos end up selling as the traditional exit?
If you have great hours, you are doing pretty well.. you are a tick below MF ASO comp but sounds like your hours are also far lower.
If you are happy and like your role/progression, the incremental $20k or so is not going to make any different in the long run
How often do these places have good hours? Is it less common for higher paying shops?
Usually pretty common since they're corp-linked rather than PE. Different investment/return mandate
Obviously more active firms will pay and work more but will still be a haircut on hours from UMM/MF PE
Yeah, my group generally works around 60 hours as well. I'm in VC though, but have some friends who work similar hours in the types of groups mentioned above.
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