Is principal higher than director in private equity?
The specific designation of Vice President or Principal differs at each firm – sometimes Principal is the equivalent of Senior Associate (like at KKR) and sometimes it is the role right before Managing Director. The most senior role is Managing Director and Partner.
At the senior level, a private equity director, principal, or managing director is directly involved with client negotiations. It's usually up to these senior folks to ultimately win and close deals. After closing a deal, these roles work extensively with portfolio companies to ensure the deal will prove successful.
| Position Title | Typical Age Range | Time for Promotion to Next Level |
|---|---|---|
| Senior Associate | 26-32 | 2-3 years |
| Vice President (VP) | 30-35 | 3-4 years |
| Director or Principal | 33-39 | 3-4 years |
| Managing Director (MD) or Partner | 36+ | N/A |
| State | Annual Salary | Hourly Wage |
|---|---|---|
| California | $105,335 | $50.64 |
| Oregon | $104,512 | $50.25 |
| North Dakota | $104,501 | $50.24 |
| Oklahoma | $103,753 | $49.88 |
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. They are also involved in the management of and execution of company portfolios.
The Principal role was created exclusively to highlight the senior IC role for those who wish to excel at their skills without managing people. The Director role is explicitly for managing other people.
Principals would be more involved in day to day operations, while directors would take more of a top-level view of the company. Executive director also tends to be a title that is used in 501(c)(3) non-profits, while principals tend to operate in more profit-drive settings.
Pay: Principals earn more than VPs in base salary, bonus, and carried interest (the last one is especially significant). Work: VPs are responsible mostly for deal execution (e.g., due diligence, financing, memo writing, managing the Analysts and Associates, etc.).
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.
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $244,500 | $20,375 |
| 75th Percentile | $190,000 | $15,833 |
| Average | $157,532 | $13,127 |
| 25th Percentile | $115,000 | $9,583 |
What level is Principal at KKR?
The specific designation of Vice President or Principal differs at each firm – sometimes Principal is the equivalent of Senior Associate (like at KKR) and sometimes it is the role right before Managing Director. The most senior role is Managing Director and Partner.
VICE PRESIDENT/PRINCIPAL: Vice presidents and principals typically manage the daily responsibilities of the deal teams and work closely with the senior partners of the firm on strategy and negotiations. Professionals in these roles are also expected to generate investment opportunities and potential acquisition ideas.
$312K (Median Total Pay)
The average Private Equity Principal base salary at The Blackstone Group is $211K per year.
The principal position is equivalent to a group (or senior) manager if you are on a managerial career path. Naturally, the next step for a principle IC is director (or VP) equivalent, often accompanied by the title “distinguished” (or “fellow”) in the IC ladders. The principal level is a sweet spot.
Scope – While principals oversee operations at individual schools, superintendents are responsible for entire districts (multiple schools and facilities). Being higher in the chain of command, superintendents have purview over significantly more students and staff.
One job title business owners may choose is to be the principal of their company. With this title comes a high level of status, responsibility and decision-making power.
The Principal oversees the educational programs of a single school. A Director oversees specific programs within a school district. For example the Curriculum and Instruction Director oversees all the curriculum and instruction for all the schools in a School District.
Typically a director heads a department or a vertical. On the other hand, a VP or vice president is one of the top 2 or 3 leaders of the organization. So usually the director reports to the VP.
A VC principal holds a decision-making position within the venture capital fund investment structure and usually has a more "hands-on" role and will be more actively support portfolio companies.
Assistant Principal/Vice Principal: The next promotion after being a principal is often the position of an assistant principal or vice principal. These individuals work closely with the principal and assist in managing the school's administrative and academic functions.
What is a principal title in finance?
Key Takeaways
A principal is essentially another name for a company owner or member; at some corporations, the principal is also the founder, CEO, or even the chief investor.
The estimated total pay range for a Principal Director at Accenture is $277K–$404K per year, which includes base salary and additional pay. The average Principal Director base salary at Accenture is $271K per year.
The estimated total pay range for a Principal at Apollo Global Management is $217K–$383K per year, which includes base salary and additional pay. The average Principal base salary at Apollo Global Management is $191K per year.
$390K (Median Total Pay)
The estimated total pay range for a Principal at Bain Capital is $303K–$512K per year, which includes base salary and additional pay.
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.
