Private Equity Firms

Discussion in 'Professional Trading' started by toc, Jun 16, 2006.

  1. toc


    Does anyone know how does working for private equity firms work out in terms of salary etc. Are private equity firms like Hedge Funds charging a percent of the profits or they just get 1-2% of the assets under management. Are partners like Hedge Fund managers who earn more if they return more on investments. Thanks to all the inputs.
  2. The only thing I know is that a good friend of mine that I went to college with works for a very big PE firm in NY. He works sick hours, probably one of the smartest guys I know, and judging by the apartment he recently purchased I'd say he's bringing home anywherebetween $2-3million a year. He's 33.
  3. PE firms are very much like hedge funds in that regard. They charge a management fee in the neighborhood of 2%, and are incentivized by carried interest (performance based compensation usually in the neighborhood of 20%) OTOH, I suppose your arrangement in working for one could dictate that you work for a locked salary.

    In any case, a PE firm is not much different than a hedge fund. They simply make money differently. PE firms deal in private entities, whereas HFs deal in public.