Expected all-in comp for PE in-house Associate GC role?

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Expected all-in comp for PE in-house Associate GC role?

Post by Anonymous User » Sun May 17, 2020 2:54 pm

Hi all,

I'm currently a mid/senior (5-6th year) associate at a V20 that does a lot of PE work (think K&E, Ropes) looking at a potential position as an associate GC with a middle market private equity firm in a non-NYC major market (approx $2-4Bn AUM across 4 funds). It looks like their legal structure currently consists of a GC and a deputy GC and they've got maybe 30-40 employees total. From my convo with the recruiter the role will support the senior legal team on new deal execution, miscellaneous legal work for the portfolio, employment issues, NDAs, and fund formation (basically a jack of all trades type role). No idea what upward mobility looks like but I would assume the GC or DGC would have to leave for there to be a meaningful promotion.

Any sense for what to expect (or ask for) on the comp front? Is it too much to ask for carry or co-invest with the fund at this level of seniority? Also, anyone work in or familiar with these types of roles? Totally get that it varies by firm culture, but it would be a good to get a sense for how people like jobs like this.

Thanks!

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Re: Expected all-in comp for PE in-house Associate GC role?

Post by Anonymous User » Sun May 17, 2020 11:19 pm

I used to work at a fund around this size. My sense is they were stingier with comp, but I believe our AGCs around that level made about $200k base and $50k bonus. Larger/more generous shops pay closer to biglaw market. I would be surprised if you were able to get carry/co-invest at that level. I don't know anyone that level in a PE/HF shop who gets carry. I think you would need to go somewhere smaller.

I'm sure you know this but in-house jobs tend to give small raises, so negotiating for a good base salary (to protect against bad performance/low bonus years) is the best course of action.

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Re: Expected all-in comp for PE in-house Associate GC role?

Post by Anonymous User » Tue May 19, 2020 8:29 am

Is the legal structure set up so you would have a principal/vp title in addition to your legal role? Or is it just legal.

Also I wouldn't be too worried about GC/DGC leaving, I've seen quite a few transitions of the GC to COO or president which opens up space.

Anyways there is a very small chance you could get 25-50 bps of the entire carry pool, especially if you do come in as a "vp" or principal. I used to do fund investing and would see carry distribution ranges across the firm.

Coinvest is very likely unless they don't allow non investment professionals to coinvest. Would be good to see if they provide leverage for you to coinvest as well.

M458

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Re: Expected all-in comp for PE in-house Associate GC role?

Post by M458 » Tue May 19, 2020 9:55 am

You won't be considered a "knowledgeable employee", so I think even co-invest is unlikely. And second the two posters above, you won't be getting any carried interest as the 3rd lawyer in the pecking order.

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Re: Expected all-in comp for PE in-house Associate GC role?

Post by Anonymous User » Tue May 19, 2020 10:23 am

M458 wrote:
Tue May 19, 2020 9:55 am
You won't be considered a "knowledgeable employee", so I think even co-invest is unlikely. And second the two posters above, you won't be getting any carried interest as the 3rd lawyer in the pecking order.
There is 2014 vintage SEC guidance on knowledgeable employees for "attorneys who regularly analyze terms and provisions of investments."

I'm in an investment seat now but was able to coinvest when in a pure legal function. There's a Wilkie article about it as well.

Depending on firm, carry can be given to #3 lawyers, I know a couple funds where the accounting managers are getting carry with around 2b AuM. Should not be expected though, but doesn't hurt to ask about when there would be allocated carry.

LBJ's Hair

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Re: Expected all-in comp for PE in-house Associate GC role?

Post by LBJ's Hair » Tue May 19, 2020 12:50 pm

Second the above RE coinvest.

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