How much does a private equity VP make?
Salary Ranges for Vice President Private Equity
The salaries of Vice President Private Equitys in The US range from $113,420 to $704,159, and the average is $200,000.
Salary Ranges for Vice President Private Equity
The salaries of Vice President Private Equitys in The US range from $113,420 to $704,159, and the average is $200,000.
In short, if you're at a top mega fund, then you can expect to get paid between $350-$400k per year. These numbers reflect total compensation paid to private equity associates in 2022.
It's normally paid once the fund has returned invested capital and achieved its hurdle rate for the entire fund – otherwise, clawbacks might be required. Compensation reports often list lump-sum dollar amounts, such as an “average” of $2 million of carry for VPs or $3 million for Principals.
In this management role, you may lead and mentor team members, work directly with clients, vet transactions, and give presentations. This job heavily emphasizes communication, including negotiation skills and the ability to convince current or potential clients to invest in your company.
Principals are the next most senior role and usually need to have several years of experience as a VP before making the leap. Principals are evaluated on their ability to find promising companies and close deals on them.
but nowhere near as much as in management consulting. While the travel will be less, the work in private equity is very stressful and demanding, so the hours you actually spend working may be more stressful or mentally demanding.
How much does a Private Equity Ceo make? As of Apr 9, 2024, the average annual pay for a Private Equity Ceo in the United States is $82,146 a year. Just in case you need a simple salary calculator, that works out to be approximately $39.49 an hour. This is the equivalent of $1,579/week or $6,845/month.
Private Equity Career Training
Private equity is a highly competitive and sought-after field.
How many hours do private equity VPs work?
VPs have marginally better lives than Associates and significantly better lives than Analysts, but they still work a lot. The average is probably 55-70 hours per week, which translates into 12-hour days in the office on weekdays, followed by a bit of extra work from home.
Getting promoted in private equity (PE) is not easy. You need to demonstrate exceptional skills, performance, and potential in a highly competitive and demanding environment.
Investment bankers make money by advising companies, structuring sales, raising capital, and taking a percentage fee on each transaction. By contrast, private equity firms make money by exiting their investments. They try to sell the companies at a much higher price than what they paid for them.
Total Salary Range for Goldman Sachs Vice President
The estimated total pay range for a Vice President at Goldman Sachs is $202K–$298K per year, which includes base salary and additional pay. The average Vice President base salary at Goldman Sachs is $189K per year.
Heidrick & Struggle's data suggests that at the top end, a managing partner in a private equity firm with at least $1bn in Assets Under Management (AUM), can expect to earn at least $3.5m in salaries and bonuses, plus around $35m in carried interest over a fund's lifecycle (typically around five years).
The estimated total pay range for a Investment Banking Vice President at Goldman Sachs is $269K–$457K per year, which includes base salary and additional pay. The average Investment Banking Vice President base salary at Goldman Sachs is $202K per year.
| Position | Typical Time in Role | Bonus |
|---|---|---|
| Senior Associate | 2 – 3 Years | $100k – $200k |
| Vice President | 3 – 4 Years | $200k – $500k |
| Director | 3 – 4 Years | $250k – $600k |
| Partner / Managing Director | n/a | $400k – $2m+ |
And if you don't stay to see the long-term results of your deals over many years, you won't receive the benefits of carry. The bottom line is that yes, the pay ceiling is higher in private equity, and there are MDs and Partners who earn many times – sometimes hundreds of times – what MDs in banking earn.
At the low end, such as at a brand-new fund with a few hundred million under management, a Partner might earn in the $500K to $1 million range for base salary + year-end bonus. As fund sizes approach several billion under management, Partners move closer to an average of $1-2 million in base salary + bonus.
How much does a Principal make at KKR in the United States? Average KKR Principal yearly pay in the United States is approximately $248,270, which is 137% above the national average.
What is the average carry in private equity?
The ability to command higher or lower carry is based on how much LP demand there is for this specific fund (which is often based on the background of the fund managers and their prior funds' performance). This percentage can range anywhere from 15 to 30% of the profits but generally hovers around 20%.
Average Bain Capital Vice President yearly pay in the United States is approximately $195,974, which is 32% above the national average. Salary information comes from 14 data points collected directly from employees, users, and past and present job advertisem*nts on Indeed in the past 36 months.
Private equity funds are illiquid and are risky because of their high use of debt; furthermore, once investors have turned their money over to the fund, they have no say in how it's managed. In compensation for these terms, investors should expect a high rate of return.
Private Equity Associate Lifestyle and Hours
At many smaller funds and middle-market funds, you can expect to work 60-70 hours per week, mostly on weekdays, with occasional weekend work when deals heat up.
Private equity will confront you with the real life of business and will overlay financial considerations – companies can only exist if they make a profit, there is no way around it. Travel. Travelling Monday to Thursday as a consultant is not fun, but private equity professionals are also very often on the road.
