As part of a broader mission to empower the fund professional, SumZero maintains an internal, user-driven compensation database. This database, which launched in 2012, now hosts over 2,600 unique compensation entries. The feature was designed to help verified buyside professionals understand more about norms in comp structures, the relative degree to which their respective incomes are competitive, and help position these individuals for future success.
Like many aspects of SumZero, access to the database is reciprocity-driven. Users submit their own comprehensive details on comp to gain access to that detail of their peers. Permissioned users can filter the database on broad variables or construct more personalized scenarios like “show me how much a Senior Analyst covering Industrials with 5-7 years of experience at a $500mm Private Equity fund in Singapore made in 2014.” For the purposes of this report, however, we are looking at much broader trends.
A few, important disclaimers before diving into the data:
1. The SumZero community does not purport to be a statistically accurate representation of the fund industry at large. Relatively speaking, the SumZero community tends to be heavilyweighted toward NYC-based analysts, it skews younger in terms of the overall age of its users, the community is more equity-focused, and users are generally employed at hedge funds versus other fund types.
2. This is user-generated information. We do not believe that there are many legitimate reasons why someone would or should provide misleading information since the information is collected anonymously. However, we believe that larger earners generally are disincentivized to share their actual compensation details, which may bias the data.
3. Some data points we collect include estimates which are inherently subject to error. This estimated data is only used in the “Trends” section of this report and is labeled as such.