Altus Partners Infra & Real Assets - Compensation Report 2023

Insights by Altus Partners

Private Equity Growth Equity Compensation Report Investment professionals

2023

Table of Contents

CONTENTS

02.

Introduction

03.

Message from Altus Partners

04.

Methodology

05 - 08.

Market Sentiment

09 - 26.

Compensation Results Analyst Associate Vice President Director Partner

27 - 29.

Conclusions

30.

Altus Partners Overview

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

01

INTRODUCTION

The 2022 - 2023 Altus Partners Private Equity - Growth Equity Compensation report provides essential insights into the current compensation expectations and talent overview within Private Equity.

This data is invaluable to firms seeking to attract top talent while managing their hiring budgets for the upcoming financial year. We are excited to bring you further insights in 2023.

The 2022- 2023 Private Equity compensation report demonstrates increased compensation expectations among candidates. International Banks and Consulting firms have compounded this situation with aggressive remuneration packages to counter regulatory changes, challenging funds to match these expectations across almost all corporate gradings. Over half of the surveyed candidates felt underpaid, indicating less enhanced employee engagement schemes.

This trend is partly driven by a cost of living crisis in many areas, which calls for salaries to be seriously readdressed. Our research shows that candidates are typically seeking 20-30% increases in their base salaries to maintain similar purchasing power as before. Carry continues to be the most attractive benefit on offer. However, beyond attractive compensation, excellent company culture, good deal flow, and successful leadership distinguish a competitive organisation.

For funds to overcome these challenges, they must offer a comprehensive package that includes competitive compensation and benefits. Additionally, successful funds can stand out with unique selling points such as a diverse team, an excellent track record, and a strong position on ESG and Sustainability. Ultimately, these elements make up the foundation of a successful fund that will be able to attract the best talent in 2023.

We thank everyone involved – individuals and funds – for participating in this 2023 Private Equity Compensation Survey. We look forward to seeing how things evolve in the coming year as the industry adjusts to changing market conditions.

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

02

MESSAGE FROM OUR FOUNDER The global economic landscape of 2023 has presented several challenges, but the market has started the year on a strong note. Funds that have fundraised in the past two years remain committed to hiring plans, and the most successful hiring will be seen amongst funds that hold compelling compensation structures and diverse workforces.

While funds face pressure to pay more than their peers, there is sometimes a disconnect between what candidates expect and receive. For funds, it is essential to remain mindful of this dynamic and ensure that they are providing a fair compensation package while also meeting the needs of their organisation. 2023 is another competitive year for hiring as funds seek to recruit the best talent available, aligning with investment and organisational objectives.

It is encouraging that many funds focus on increasing diversity within their investment teams. This was the number one trend when hiring in 2022, and it is pleasing to see that the focus remains strong in 2023. The positive results of such initiatives can often be seen quickly and will continue to have a long-term impact across the entire industry.

"

The Private Equity space continues to evolve and with package benchmarks changing quicker than ever, clients need the latest data to ensure talent isn't lost to competitors.

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

03

METHODOLOGY The Altus Partners Private Equity - Growth Equity Compensation report has been collated by collecting data from our network of clients, candidates and the Altus Partners Salary Survey (carried out in February 2023). The compensation information sought was specific to base salaries, short-term incentives (bonuses), and longterm incentives (carry allocations).

These independent data sets were collected through securely designed online tools, ensuring anonymity to all participants. Ethical considerations were awarded to those who shared personal information by ensuring confidentiality.

Data Sources

01

Fund Data

02

Candidate Data

03

Survey

We collected data directly from 102 Private Equity funds regarding base salary, bonus and equity components of compensation. In addition, the survey also gathered data on additional benefits such as healthcare and other fringe benefits. The survey results were then separated by strategy and fund size.

The data collected was a comprehensive overview of 892 candidates' remuneration packages. It provided insight into the compensation structures that various firms have employed in the past 3 months. The results were further broken down by fund size and investment strategy, indicating trends across different market segments.

An analysis of 320 survey candidate responses revealed current compensation based on experience and level. The results were separated by fund strategy and AUM.

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

04

SURVEY RESULTS Q: Do you feel your current compensation is: 320 participants (candidates) responded to the following question: Do you feel your current compensation is: Below Market Rate, At Market Rate, or Above Market Rate?

Despite significantly increasing compensation across the industry in the past few years, most employees still feel they earn below the market rate. Of all salaries awarded in 2023, 46.7% felt they were at market rate, and 50.7% were below market rate. This demonstrates an ongoing disparity between salary levels and expectations.

The results could also indicate the rise in pressures associated with the cost of living.

To ensure employees are paid fairly and competitively, reviewing salaries yearly and adjusting accordingly is essential. Companies must also provide pay standards reflecting each job role's current labour markets and allow for nimble adjustments to attract the right talent. Market competitive compensation is critical for employee satisfaction, retention, and motivation.

Above market rate 2.7%

At market rate 46.7%

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

Below market rate 50.7%

05

SURVEY RESULTS Q: If you were to move, how much of a % increase would you expect to receive in your total compensation?

320 participants (candidates) responded to the following question: If you were to move, how much of a % increase would you expect to receive in your total compensation? Nothing, Up to 10%, 10 – 20%, 20 – 30%, 30 – 50%, Above 50%.

The results of this question have come as a surprise, especially with 65% of respondents expecting to receive a compensation increase of 20% or more. This significant rise is likely due to the current economic conditions, such as the rising cost of living, economic uncertainty, and increased competition.

As the market conditions cool, there is an expectation that compensation expectations will follow suit and adjust accordingly. We anticipate this realignment to occur over the next few years, culminating at the end of 2024 and the start of 2025.

Companies should plan for a transition period as salaries are readjusted to reflect the current conditions of the marketplace. It is important to note that compensation packages may look different from what they have in the past, so employers should be prepared to adapt accordingly.

Nothing 5.6%

Up to 10% 4.2%

30 – 50% 23.6%

10 – 20% 18.1%

20 – 30% 44.4% PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

06

SURVEY RESULTS Q: What is the most attractive benefit to you when looking to move?

320 participants (candidates) responded to the question: What is the most attractive benefit to you when looking to move? Working flexibility, Pension, Flexible benefits taken as cash or in direct benefits, Carry, Bonus potential, Other Flexibility is increasingly becoming the norm in the industry, and with good reason.

Not only does it benefit employees, but it also can lead to improved job satisfaction and productivity. However, while flexible working is a significant priority for many employees in the sector, carry allocation remains an essential source of motivation and reward, especially for those who acknowledge the value of longer-term rewards over short-term rewards.

Unfortunately, we have found that transparency around carry has diminished over time. This can be particularly problematic at entry-level positions, where there may be little to no information about carry or other incentives that could help motivate employees at this stage. As such, there is undoubtedly an opportunity for companies to take a more proactive approach to offer employees access to carry schemes earlier in their careers.

Flexible benefits taken as cash or in direct benefits 6.8% Bonus potential 14.9%

Working flexibility 29.7%

Other 4.1%

Carry 44.6% PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

07

SURVEY RESULTS Q: Do current market conditions make you either more or less likely to leave your current employer?

320 participants (candidates) responded to the question: Do current market conditions make you: More likely to leave your current employer? Less likely to leave your current employer? No Change?

Survey results indicate that the current market conditions make 25% of respondents more likely to leave their employer and 34.72% less likely to leave. 40.28% reported that their intentions remained the same. This survey suggests that external economic factors can significantly impact employees' job stability and mobility decisions.

Employers must be aware of these trends when developing strategies to recruit, develop, and retain talent in the current climate.

More likely to leave your current employer 25%

No Change 40.3%

Less likely to leave your current employer 34.7%

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

08

GROWTH EQUITY Compensation for Analyst-level or equivalent investment professionals.

Definition: Professionals at the entry-level of the investment industry. An Analyst assists in managing and monitoring portfolio companies under the direction of senior team members, analysing companies and business plans, performing financial modelling, conducting due diligence, and assisting with service provider relationships.

Focus: Private Equity Region focus: Europe Denomination: £

Experience

Relevant experience levels: 2 years 3 years Experience (relevant experience) is based on post-graduate, relevant experience.

Titles

Corporate titles vary per organisation, and these quantified grades do not account for variations such as early promotions and less hierarchical organisational structures. Similar industry titles include: Executive

Flash data

Market observation across fund sizes: Base salary low: £50,000 Base salary high: £90,000

Total comp low: £80,000 Total comp high: £160,000

Bonus low: £30,000 Bonus high: £70,000

Carry low: 0.00 Carry high: 0.7

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

09

INVESTMENT PROFFESIONAL Investment Analyst

40% 40/60 Female vs Male Participants

Candidates in the Private Equity market with 2-3 years of experience.

This would include pre-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

150,000

100,000

50,000

0

Less than 100m

100 - 500m

500 - 1bn

1 - 10bn

10bn+

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

73,468

24,837

0

98,305

100 - 500m

76,230

27,903

0

104,133

500 - 1bn

80,667

36,807

0

117,474

1 - 10bn

82,457

48,972

0

131,429

10bn+

84,586

52,026

0

136,612

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

10

GROWTH EQUITY Compensation for Associate-level or equivalent investment professionals.

Definition:

Professionals who have joined the industry typically post Investment Banking, Consulting, practice or upon graduation. Senior team members supervise Associates in analysing companies and business plans, financial modelling, due diligence, working with service providers, and assisting with portfolio company management (observer). Associates may oversee a junior, depending on experience.

Focus: Private Equity Region focus: Europe Denomination: £

Experience

Relevant experience levels: 4 years 5 years 6 years Experience (relevant experience) is based on post-graduate, relevant experience.

Titles

Corporate titles vary per organisation, and these quantified grades do not account for variations such as early promotions and less hierarchical organisational structures. Similar industry titles include: Investment Manager Senior Associate

Flash data

Market observation across fund sizes: Base salary low: £70,000 Base salary high: £125,00

Total comp low: £85,000 Total comp high: £250,000

Bonus low: £15,000 Bonus high: £125,000

Carry low: 0.00 Carry high: 3.00

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

11

INVESTMENT PROFFESIONAL Investment Associate 1

38% 38/42 Female vs Male Participants

Candidates in the Private Equity market with four years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value. Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

0.75

0.71

0.897

0.97

1.07

100 - 500m

500 - 1bn

1 - 10bn

10bn+

200,000

150,000

100,000

50,000

0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

84,609

61,245

0.75

145,854

100 - 500m

88,047

65,634

0.71

153,681

500 - 1bn

97,829

73,917

0.897

171,746

1 - 10bn

99,619

85,361

0.97

184,980

10bn+

101,208

90,467

1.07

191,675

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

12

INVESTMENT PROFFESIONAL Investment Associate 2

35% 35/65 Female vs Male Participants

Candidates in the Private Equity market with five years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

0.82

0.89

0.981

1.06

1.17

100 - 500m

500 - 1bn

1 - 10bn

10bn+

250,000 200,000 150,000 100,000 50,000 0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

84,815

58,155

0.82

142.970

100 - 500m

89,341

63,199

0.89

152,540

500 - 1bn

98,818

72,302

0.981

171,120

1 - 10bn

103,699

80,255

1.06

183,954

10bn+

114,068

88,394

1.17

202,462

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

13

INVESTMENT PROFFESIONAL Investment Associate 3

33% 33/67 Female vs Male Participants

Candidates in the Private Equity market with six years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value. Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

1.07

1.16

0.897

1.39

1.53

100 - 500m

500 - 1bn

1 - 10bn

10bn+

250,000 200,000 150,000 100,000 50,000 0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

88,028

67,412

1.07

155,440

100 - 500m

92,234

70,856

1.16

163,090

500 - 1bn

102,323

78,606

1.283

180,929

1 - 10bn

108,323

86,017

1.39

194,340

10bn+

119,155

93,646

1.53

212,801

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

14

GROWTH EQUITY Compensation for VP-level or equivalent investment professionals.

Definition:

A Vice President is an experienced executive who manages and leads deal teams at a company. In addition to identifying potential acquisitions, they may be expected to originate their investments. They may serve on the boards of portfolio companies as board members.

Focus: Private Equity Region focus: Europe Denomination: £

Experience

Relevant experience levels: 7 years 8 years 9 years Experience (relevant experience) is based on post-graduate, relevant experience.

Titles

Corporate titles vary per organisation, and these quantified grades do not account for variations such as early promotions and less hierarchical organisational structures. Similar industry titles include: Associate Director Senior Investment Manager Principal

Flash data

Market observation across fund sizes: Base salary low: £80,000 Base salary high: £250,000

Total comp low: £100,000 Total comp high: £550,000

Bonus low: £20,000 Bonus high: £300,000

Carry low: 0.00 Carry high: 5.00

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

15

INVESTMENT PROFFESIONAL Vice President 1

28% 28/72 Female vs Male Participants

Candidates in the Private Equity market with seven years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

3.73

3.79

3.87

1.94

1.04

100 - 500m

500 - 1bn

1 - 10bn

10bn+

300,000

200,000

100,000

0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

108,342

79,964

3.73

188,306

100 - 500m

115,493

84,959

3.79

200,452

500 - 1bn

127,519

92,913

3.87

220,432

1 - 10bn

134,184

100,114

1.94

234,298

10bn+

147,275

123,827

1.04

271,102

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

16

INVESTMENT PROFFESIONAL Vice President 2

24% 24/76 Female vs Male Participants

Candidates in the Private Equity market with eight years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

4.03

4.12

4.23

2.33

1.47

100 - 500m

500 - 1bn

1 - 10bn

10bn+

300,000

200,000

100,000

0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

110,317

83,172

4.03

193,489

100 - 500m

119,780

90,306

4.12

210,086

500 - 1bn

132,009

99,526

4.23

231,535

1 - 10bn

143,171

107,942

2.33

251,113

10bn+

157,342

118,625

1.47

275,967

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

17

INVESTMENT PROFFESIONAL

21%

Vice President 3

21/79 Female vs Male Participants

Candidates in the Private Equity market with nine years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

4.16

4.26

4.53

2.51

1.76

100 - 500m

500 - 1bn

1 - 10bn

10bn+

£300,000

£200,000

£100,000

£0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

114,416

92,095

4.16

206,511

100 - 500m

124,230

99,994

4.26

224,224

500 - 1bn

136,913

110,203

4.53

247,116

1 - 10bn

148,491

119,522

2.51

268,013

10bn+

163,188

131,352

1.76

294,540

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

18

GROWTH EQUITY Compensation for Director-level or equivalent investment professionals.

Definition:

A Director is an experienced executive who manages and leads deal teams at a company. In addition to identifying potential acquisitions and they manage divisional budgets. They will serve as board members on the boards of typically 3-4 portfolio companies.

Focus: Private Equity Region focus: Europe Denomination: £

Experience

Relevant experience levels: 10 years 11 years 12 years Experience (relevant experience) is based on post-graduate, relevant experience.

Titles

Corporate titles vary per organisation, and these quantified grades do not account for variations such as early promotions and less hierarchical organisational structures. Similar industry titles include: Senior Investment Principal Jnr Partner Associate Partner

Flash data

Market observation across fund sizes: Base salary low: £95,000 Base salary high: £300,000

Total comp low: £155,000 Total comp high: £550,000

Bonus low: £60,000 Bonus high: £250,000

Carry low: 0.50 Carry high: 8.00

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

19

INVESTMENT PROFFESIONAL

19%

Director 1

19/81 Female vs Male Participants

Candidates in the Private Equity markets with ten years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

6.07

6.16

5.283

2.90

2.53

100 - 500m

500 - 1bn

1 - 10bn

10bn+

£400,000

£300,000

£200,000

£100,000

£0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

115,932

105,311

6.07

221,243

100 - 500m

125,876

114,344

6.16

240,220

500 - 1bn

138,727

126,018

5.283

264,745

1 - 10bn

150,458

136,674

2.90

287,132

10bn+

165,350

150,202

2.53

315,552

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

20

INVESTMENT PROFFESIONAL Director 2

18% 18/82 Female vs Male Participants

Candidates in the Private Equity market with eleven years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

5.03

6.12

5.287

3.33

2.47

100 - 500m

500 - 1bn

1 - 10bn

10bn+

£400,000

£300,000

£200,000

£100,000

£0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

128,364

109,475

5.03

237,840

100 - 500m

139,375

118,866

6.12

258,241

500 - 1bn

153,604

131,001

5.287

284,605

1 - 10bn

166,593

142,079

3.33

308,672

10bn+

183,082

156,141

2.47

339,223

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

21

INVESTMENT PROFFESIONAL Director 3

26% 26/74 Female vs Male Participants

Candidates in the Private Equity market with twelve years of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

6.04

6.13

5.24

4.34

2.77

100 - 500m

500 - 1bn

1 - 10bn

10bn+

£400,000

£300,000

£200,000

£100,000

£0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

137,965

117,815

6.04

255,780

100 - 500m

149,799

127,921

6.13

277,720

500 - 1bn

165,092

140,981

5.24

306,073

1 - 10bn

179,053

152,903

4.34

331,955

10bn+

196,775

168,036

2.77

364,811

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

22

GROWTH EQUITY Compensation for Partner-level or equivalent investment professionals.

Definition:

Expert dealmakers and senior firm members responsible for sourcing and originating investments. In addition to interacting directly with management teams and negotiating with them, managing partners are (typically) part of the firm's investment committee.

Focus: Private Equity Region focus: Europe Denomination: £

Experience

Relevant experience levels: 13+ years+ Experience (relevant experience) is based on post-graduate, relevant experience.

Titles

Corporate titles vary per organisation, and these quantified grades do not account for variations such as early promotions and less hierarchical organisational structures. Similar industry titles include: Jnr Partner Managing Director Managing Partner

Flash data

Market observation across fund sizes: Base salary low: £175,000 Base salary high: £350,000

Total comp low: £255,000 Total comp high: £1,050,000

Bonus low: £80,000 Bonus high: £700,000

Carry low: 2.00 Carry high: 25.00

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

23

INVESTMENT PROFFESIONAL Jnr Partner

20% 20/80 Female vs Male Participants

Candidates in the Private Equity market with thirteen years to fifteen years of relevant experience. This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

7.012

8.16

5.283

4.39

3.53

100 - 500m

500 - 1bn

1 - 10bn

10bn+

£500,000 £400,000 £300,000 £200,000 £100,000 £0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

182,256

155,605

7.012

337,861

100 - 500m

197,889

168,952

7.16

366,841

500 - 1bn

218,092

186,201

5.283

404,293

1 - 10bn

236,534

201,947

4.39

438,481

10bn+

259,946

221,934

3.53

481,880

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

24

INVESTMENT PROFFESIONAL

11%

Mid-Level Partner

11/89 Female vs Male Participants

Candidates in the Private Equity market with fifteen years to twenty years of relevant experience. This would include post-MBA individuals. Salaries are shown in £0 value.

Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

8.07

8.16

7.444

5.39

5.53

100 - 500m

500 - 1bn

1 - 10bn

10bn+

£600,000

£400,000

£200,000

£0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

234,077

159,433

8.07

393,509

100 - 500m

254,155

173,108

8.16

427,263

500 - 1bn

280,102

190,781

7.444

470,883

1 - 10bn

303,788

206,914

5.39

510,702

10bn+

333,856

227,393

5.53

561,249

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

25

INVESTMENT PROFFESIONAL Senior Partner

14% 14/86 Female vs Male Participants

Candidates in the Private Equity market with twenty years+ of relevant experience.

This would include post-MBA individuals. Salaries are shown in £0 value. Carry is shown in the percentage points (2/20) model. Based on a single fund award.

Mean Carry Bps

10.70

9.16

8.283

7.39

7.53

100 - 500m

500 - 1bn

1 - 10bn

10bn+

£750,000

£500,000

£250,000

£0

Less than 100m

Fund AUM

Mean Base Salary

Mean Bonus

Mean Carry

Mean Total Compensation

Less than 100m

268,279

200,573

10.07

468,852

100 - 500m

291,291

217,778

9.16

509,069

500 - 1bn

321,029

240,011

8.283

561,040

1 - 10bn

348,176

260,307

7.39

608,483

10bn+

382,637

286,071

7.53

668,708

Carried Interest Calculator PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

26

FINDINGS

1,314 participants contributed towards the Private Markets remuneration data for 2022 - 2023. Corporate levels grouped the participants (viz., Analyst, Associate, Director, Vice President, and Partner).

Data were sorted according to base salary, bonuses, and carry allocations.

This was sorted according to the main fund types within Private Equity (viz., Venture Capital, Growth Equity, and Large buyout funds).

Bonus ranges at Analyst generally did not exceed the threshold of 100%. At Vice President and Director level, there were examples of this being one or two times base. At the Partner level, bonuses varied primarily due to asset-raising success. There were examples of no bonus being paid at all, though this is rare.

Carry allocations are always subjective to funds, with undisclosed terms and conditions. It is, however, clear that carry allocations are awarded as early as the Associate level, with more sizeable distributions being extended to professionals at the higher end of the corporate levels.

Total compensation proportionally increased with an increase in assets under management. Distinguished compensations were noted between small- and mid-cap, small- and largecap, and mid- and large-cap funds. However, differentiation in total compensation amongst funds within similar AUM ranges was marginal.

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CONCLUSIONS Does your current talent attraction strategy meet the evolving state of the talent market?

01

Talent Attraction With the benefit of engaging with a range of sellside and buy-side professionals who represent diversity in seniority and professional and personal circumstances, we have identified common motivations that drive movement to new organisations and considerations toward such.

Commercial/ fund confidence ranks at the top of the list, where candidates who are moving either to or between buy-side firms are strictly assessing the fundraising activity of potential employers. A healthy history of fund-raising and investor returns are strong indicators, alongside the quality of portfolio companies and respective activity.

Closely associated with this are the ESG and Sustainability agendas of funds, where candidates are encouraged by firms with an established strategy (or intention to develop this where it is absent) and commitment to building a dedicated team who will deliver on this strategy.

A lighter consideration, albeit still significant for some candidates, includes learning and development pathways. This is critical to candidates demanding that organisations be conscious of the active role they should play in one’s professional advancement. Candidates assess this through well-defined L&D plans; involved leaders; and the volume, nature, and quality of investment activity.

Working models are the next of such considerations, where professionals greatly favour organisations that adopt a hybrid working model. Whilst Investment professionals value the importance of collaboration and inperson engagement, the opportunity to have flexibility in this regard carries a lot of weight.

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

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CONCLUSIONS What are the key influencers set to drive hiring over the next year?

02

Anticipated hiring 2023 – 2024 Over the coming financial year, Private Market firms will continue to afford equitable talent acquisition to grow and develop diverse teams and adapt to the changing market needs.

General Partners are increasingly under the microscope for diversified teams. Since diversity is not a one-size-fitsall approach, we want to see how organisations will further define what diversity means to them and how this will inform talent acquisition, retention, and development strategies.

Considering EU regulations informing responsible investing principles and the United Nations’ SDGs, Limited Partners are raising their demands which means that ESG and Sustainability teams will be scaling up rapidly.

Of all the investment strategies, it is said that co-investing will be distinguished as more buoyant with investment activity. As a result, we expect that co-investors will showcase most investment professional hires over the next year.

Whilst there are encouraging talent acquisition expectations, the likelihood of fundraising facing a degree of headwinds and a lengthier due diligence process depicts instances where non-critical business hires will be approached less aggressively. These non-critical hires may be regarded as those who either do not contribute to the bottom line or could be more influential in the growth of an organisation.

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS

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CONCLUSIONS How can you stay competitive in an evolving hiring market?

03

Staying ahead of the talent demand It is apparent that having a thoughtful talent acquisition strategy which is attentive to the evolution of the market is critical.

In this case, not only compelling remuneration structures but also exclusive variables which allow organisations to stay ahead of competitors.

Flexible working arrangements should be supported, especially where workforces are addressing gender imbalances.

Skilling and upskilling should remain an ongoing part of talent retention and talent development.

The most successful hiring strategies will however be seen in streamlined and efficient hiring processes. This ensures a greater probability of securing talent, especially those who hold unique skills and those who are the aspired employees of many.

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ALTUS PARTNERS

Altus Partners Investment Practice, is an award-winning, highly talented team of specialists within their strategies and market verticals. We have completed over 1,000 searches throughout Europe for global funds, mid-market investors, family offices, growth and venture capital investors.​ Practice Team Ed Chamberlain, Partner Private Equity Patrick Gee, Principal Infrastructure & Real Assets Sam Block, Senior Associate Private Equity Harvey Von Biel, Senior Associate Private Credit Gizelle Moodley, Senior Associate Impact Investing/ ESG and Sustainability Thomas Amos, Senior Associate Infrastructure & Real Assets

Altus Partners 90 High Holborn, Holborn, London, WC1V 6LJ (0) 203 137 3250

www.altus-partners.com info@altus-partners.com

PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS