If you are able to work at one of the larger well-known hedge funds, then you could make $300K+ during your first year there. There's a wide range between what the company pays the top 20 percent and the bottom 20 percent of earners. In addition, they can expect to be promoted to the role of Senior Associate in a reasonable span of 2 to 3 years, especially if working at a smaller firm. The raises are discretionaryand can range from $25,000 to $50,000. Senior Associate salaries and bonuses ($150K Salary + $150-$250K Bonus) The actual average hours worked per week at Blackstone Group based on our data is actually 67 hours, which would bring down the true effective hourly rate to $30 on average. The advantage of HFs is that if you have a great single year, with NAV above the high-water-mark, you can get a huge bonus in that single year from the carried interest. https://mergersandinquisitions.com/off-cycle-private-equity-recruiting/. However, they enjoy less freedom to finish projects from start to end independently and may spend more time assisting Associates. Yes. So doing the math it looks like partners and principals at top PE firms average something like 5-10M annually (! Although they are usually much smaller and more careful in choosing their employees, the employees are not required to maintain sky-high performance standards once hired, resulting in less stressful days. Real Estate Private Equity (REPE) | Career Path + Industry Guide At smaller firms, more Associates come from middle market and even boutique banks; some management consultants and Big 4 and corporate development professionals also get in. The estimated total pay for a Principal at The Blackstone Group is $500,430 per year. All funds charge a management fee to cover the expenses of managing the fund, except the fund manager's compensation. If there is a 401(k) or a different retirement plan available, make sure that it aligns with your personal views and expectations. This base compensation is the equivalent of $48 per hour assuming a 40 hour work week (2,000 hours per year). However, the Wall Street Journal points out that this portfolio increased by 13.8% last year. But in real life, most people are drawn to private equity because it offers high compensation, somewhat better hours than investment banking, and more interesting work. Nonetheless, Associates are promoted to Senior Associate after working at the firm for a few years or working there for a few years and returning after attending a B-school. sports injury statistics 2021 . The dark blue line within each bar represents the average salary for that position. Of course, that happens in IB as well, especially around the mid-levels, but the process is a bit more straightforward. Base salaries for its associates and VPs appear to be competitive, while its portfolio management associates, portfolio managers and managing directors all seem to be well-compensated. Depending on how big the firm is, you could get paid more.