For those that don’t know what these jobs are; a Private Equity firm buys companies, increases their value, then sells them for profit. I have 2 friends in the field and the TC is insane. Keep in mind that the entry level roles are more technical so most SDEs would do fine in the role. Age 22-25 1st year Analyst/Associate TC: $300-$450k Age 24-28 2nd year Analyst/Associate TC: $350-$500k Age 26-32 3rd year Analyst/Associate TC: $400-$650k Age 30-35 VP (this is basically like an L6 role in tech):$1m-$6m Age 36+ Managing Director/Partner: $25m-$50m+ Promos are usually much faster than tech and you make a lot because you get a portion of the sale profit aka “carry.” Hours typically only 55-60 a week. We are in the wrong field bros :(
Looks somewhat like tech TC + ~50k until the VP stage. Good for them I guess, but I wouldn’t consider it ‘insane’.
I updated the numbers to reflect what is typical for the best PE firms. Like comparing FAANG to upper tier PE
“Only” 55-60 hours a week? You’ve got the wrong job, sport.
But what if that's a tradeoff for retiring a couple decades earlier than the norm and working 0 hours per week?
You missed the point, the OP insinuates that that is a low number. If they are working MORE....something is wrong.
Not everyone will make it to VP
Yeah just like not everyone will make L6 at Google.
“Only” 55-60 hours? That uplift isn’t worth that time.
What is a good list of PEs? Are they all in NYC or Bay area?
One of the biggest PE firms called TPG Capital is in the Bay Area and Texas. Others include The Blackstone Group, KKR, and Carlyle Group (named after the famous NYC hotel). They vary and are located all over the country.
PE and tech are two totally different fields. You can’t compare like that.
These numbers look on par or lower than tech for above average interviewers until the high end range of VP+. Also it’s much, much easier to reach the lower level numbers in tech than in finance. Much easier. Like factor of 10x more people in tech at least. And if you’re as good as you have to be in finance to get these jobs jobs/comps but in tech I’m skeptical you can’t also reach these numbers, or at the very least transition (e.g. to a venture fund) to make them.
You’re right. I listed average PE salaries across the board. The FAANG equivalent in PE (called a megafund) play considerably higher for each level; think $400k starting
I know what a megafund is. The data I have strongly contradicts that assertion (I.e. friends in the industry). What’s the source of your data?
These seem a bit low for PE? From my colleagues who go to PE, they make considerably more than $300 at 24. (Also, I disagree with the point that SWEs would do fine in the role. PE people tend to be quite a bit smarter and a lot more cutthroat. Not the right env for SWEs)
At mega funds people make more. I was putting more of an average. Are you a consultant planning to go to PE?
Nope, not for me (it’s all about buying a company, firing people until the numbers look a bit better, and then selling)! I’m a techie at heart (loved hackathons, built a few things, published a few papers etc.) so I want to go to product eventually. I didn’t want to do SWE when I graduated because I didn’t find it that interesting personally, so McK was a good challenge :) Took a hit on the TC though but I don’t really care as I find the job way more satisfying.
Is tech not soul-sucking enough for you? Is working on problems that are actually sort of interesting despite the fact that in practice solving them is destroying the planet, expanding the carceral state, or making other workers’ lives hell just too satisfying? Do you wish you were Patrick Bateman, but with less of a life?
Obvi
You in PE?
Unfortunately no, but finance background so I know the comp structure of the industry well.