Who makes more money investment bankers or private equity?
Private equity firms are investment businesses comprising investors who use their capital to invest in private businesses. Those working in private equity can often achieve a higher salary, but their income may be less stable than those working in investment banking.
Private equity roles are typically for individuals who already have work experience, so the jobs are not necessarily entry-level. Many investment bankers graduate to working in private equity, therefore, private equity salaries tend to be higher.
So, if you're interested in finance and deal-making, investment banking is the way to go. If you're more interested in strategy and operations, private equity might be a better fit.
Investment bankers are typically the highest-paid workers in the finance industry—high salaries are most prevalent even among younger employees.
On the whole, investment bankers are drawn to private equity for its long-term focus, greater control over investment decisions, higher compensation, entrepreneurial opportunities, and the opportunity to develop a more diverse skill set.
If the firm likes you, they'll support you in making the move – plus, most PE funds have solid connections to banks, which is yet another advantage of doing a private equity internship first.
Very High Confidence means the data is based on a large number of latest salaries. Private Equity Associate salary in India ranges between ₹ 2.5 Lakhs to ₹ 45.0 Lakhs with an average annual salary of ₹ 11.4 Lakhs. Salary estimates are based on 135 latest salaries received from Private Equity Associates.
While no job is perfect, it's true that private equity investing is one of the most attractive (and lucrative) career paths around. Private equity is attractive for a number of reasons: High prestige and compensation in private equity. Relatively better than investment banking hours.
The private equity space is one of the most competitive, but also offers some of the most lucrative careers in the world of finance.
Private equity is a very lucrative career. As an asset class, private equity has enjoyed tremendous success over the past decade. Investors around the globe continue to pile their money into private equity firms.
Do investment bankers make 500K a year?
Ways to make a lot of money in this world
Sure, anybody can make a good living being a doctor or a lawyer or an investment banker where you can make ~$200-500K per year a few years after you finish with your studies, but you hit a ceiling very quickly unless you start your own practice (aka start your own business).
- Commercial Banker. Salary range: $110,000-$179,000 per year. ...
- Banking Consultant. Salary range: $154,000-$171,500 per year. ...
- Investment Banker. Salary range: $107,500-$123,500 per year. ...
- Banking Services Advisor. ...
- Bank Secrecy Act Officer. ...
- Bank Examiner. ...
- Business Banker. ...
- Merchant Banker.
On average, a first-year investment banker makes a 5-digit salary, in the range of $70,000 – $90,000, while a 7-digit salary is considered above average and is difficult to achieve for most people in their careers.
For many, private equity is more prestigious than investment banking. In conclusion, you should consider choosing private equity if you see yourself as an investor in the long term, and want to learn all aspects of the process and how to evaluate how a company delivers solid returns.
Landing a career in private equity is very difficult because there are few jobs on the market in this profession and so it can be very competitive. Coming into private equity with no experience is impossible, so finding an internship or having previous experience in a related field is highly recommended.
Investors need to know they can rely on what you say and the analysis you're producing. The average during a busy time for associates and analysts is usually around ~60-70 hours per week. But it's all dependent on how many deals and investments are on the go. The above hours will vary based on if there's a live deal.
Both investment banking and private equity are demanding careers that require long working hours, although private equity firms tend to have a more relaxed work environment and offer a more flexible schedule.
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.
One potential route to break into private equity without a banking background is via management consulting. It's slightly more difficult than breaking in from investment banking, but it's common enough that you'll still be able to leverage headhunters and participate in standard on-cycle and off-cycle recruiting.
| 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 is the salary of a VP in private equity?
Private Equity Vice President Salary in California. $113,500 is the 25th percentile. Salaries below this are outliers. $187,500 is the 75th percentile.
| Private Equity Salary Data | ||
|---|---|---|
| 2nd Year Associate | $160k – $180k | $170k – $270k |
| 3rd Year Associate | $180k – $200k | $180k – $300k |
| Senior Associate | $200k – $220k | $210k – $390k |
| Vice President (VP) | $230k – $260k | $340k – $520k |
In private equity, you'll also be responsible for a lot of different tasks. The deal teams are lean and your decisions will have a high degree of permanence, which is why I'd say the stress level is overall higher in private equity than in banking. Very importantly, there's also no one around to check your work.
| State | Annual Salary | Hourly Wage |
|---|---|---|
| California | $89,038 | $42.81 |
| Maryland | $88,832 | $42.71 |
| Tennessee | $88,240 | $42.42 |
| Utah | $87,969 | $42.29 |
Private Equity Career Training
PE firms are small, tight-knit, and full of extremely smart and highly motivated people.
