Paradosso wrote:
I was checking the emplyoment report for M7 schools yesterday, and looking at the higher end of the compensation ranges it struck me that while the share of applicants that go into PE/VC is in fact quite similar among schools (around 10% for H/S/W, around 5% for others), the compensation is totally different: Stanford gets incredible highs (250K base salary, 200K guaranteed bonus, 100K sign-on), Harvard trails (160K base), all the ohers including Wharton report compensation aligned with the higher end of IB.
Anyone has some rationale for this kind of placement in PE/VC? Agold?
My guess would be that Harvard and Stanford place more people into large-cap PE funds (KKR, Blackstone, Carlyle, TH Lee, and their peers), whereas Wharton/Chicago/Columbia/etc. tend to place more people into small-cap and mid-market PE funds where the assets under management, and therefore compensation is lower.
Large cap PE is really dominated by H/S. One side factor to consider is that the large cap funds will work you to the bone. 70-100 hour weeks are common at places like KKR and Blackstone - you're basically working banker hours. If you go to a smaller fund, depending on what their culture is like, you could be working 50-60 hours/week and maintain a good work-life balance while still making "banker money".