Insights by Altus Partners
Private EquityInvestment Professionals Compensation Report 2023
Introduction 02. TableofContents 0 1 Compensation Results 09 - 26. Message from Altus Partners 03. Conclusions 27 - 29. Methodology 04. Market Sentiment 05 - 08. C
PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS Altus Partners Overview 30. Analyst Associate Vice President Director Partner
O N T E N T S
I N T R O D U C T I O N
The 2022 - 2023 Altus Partners Private Equity - Investment Professionals
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
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MESSAGEFROM OURFOUNDER
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
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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.
METHODOLOGY
The Altus Partners Private Equity - Investment Professionals 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 long-term 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
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
Candidate Data
02
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.
03
Survey
An analysis of 320 survey candidate responses revealed current compensation based on experience and level. The results were separated by fund strategy and AUM
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SURVEYRESULTS
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, 467% felt they were at market rate, and 507% 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
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Belowmarketrate 50.7% Atmarketrate 46.7% Abovemarketrate 2.7%
SURVEYRESULTS
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
20–30% 44.4% 30–50% 23.6% 10–20% 18.1% Nothing 5.6% Upto10% 4.2% 0 6
PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS
SURVEYRESULTS
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.
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Carry 44.6% Workingflexibility 29.7% Bonuspotential 14.9% Flexiblebenefitstakenascashorindirectbenefits 6.8% Other 4.1%
SURVEYRESULTS
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 3472% less likely to leave 4028% 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
NoChange 40.3% Lesslikelytoleaveyourcurrentemployer 34.7% Morelikelytoleaveyourcurrentemployer 25%
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INVESTMENT PROFESSIONALS
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
Bonus low: £30,000
Bonus high: £70,000
Total comp low: £80,000
Total comp high: £160,000
Carry low: 000
Carry high: 07
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INVESTMENT PROFFESIONAL
Investment Analyst
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ 150,000 100,000 50,000 0 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
1 0 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 40/60 Female vs Male Participants 40% Carried Interest Calculator
INVESTMENT PROFESSIONALS
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
Base salary low: £70,000
Base salary high: £125,00
Bonus low: £15,000
Bonus high: £125,000
Total comp low: £85,000
Total comp high: £250,000
Carry low: 000
Carry high: 300
Market observation across fund sizes:
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PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS
INVESTMENT PROFFESIONAL
Investment Associate 1
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ 200,000 150,000 100,000 50,000 0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 84,609 61,245 075 145,854 100 - 500m 88,047 65,634 071 153,681 500 - 1bn 97,829 73,917 0.897 171,746 1 - 10bn 99,619 85,361 097 184,980 10bn+ 101,208 90,467 107 191,675
1 2 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 0 75 Mean Carry Bps 0 71 0 897 0 97 1 07 38% Carried Interest Calculator 38/42 Female vs Male Participants
INVESTMENT PROFFESIONAL
Investment Associate 2
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ 250,000 200,000 150,000 100,000 50,000 0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 84,815 58,155 082 142970 100 - 500m 89,341 63,199 0.89 152,540 500 - 1bn 98,818 72,302 0981 171,120 1 - 10bn 103,699 80,255 106 183,954 10bn+ 114,068 88,394 117 202,462
1 3 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 0 82 Mean Carry Bps 0 89 0 981 1 06 1 17 35% Carried Interest Calculator 35/65 Female vs Male Participants
INVESTMENT PROFFESIONAL
Investment Associate 3
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ 250,000 200,000 150,000 100,000 50,000 0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 88,028 67,412 107 155,440 100 - 500m 92,234 70,856 1.16 163,090 500 - 1bn 102,323 78,606 1283 180,929 1 - 10bn 108,323 86,017 139 194,340 10bn+ 119,155 93,646 153 212,801
1 4 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 1 07 Mean Carry Bps 1 16 0 897 1 39 1 53 33% Carried Interest Calculator 33/67 Female vs Male Participants
INVESTMENT PROFESSIONALS
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
Bonus low: £20,000
Bonus high: £300,000
Total comp low: £100,000
Total comp high: £550,000
Carry low: 000
Carry high: 500
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INVESTMENT PROFFESIONAL
Vice President 1
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ 300,000 200,000 100,000 0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 108,342 79,964 373 188,306 100 - 500m 115,493 84,959 3.79 200,452 500 - 1bn 127,519 92,913 387 220,432 1 - 10bn 134,184 100,114 194 234,298 10bn+ 147,275 123,827 104 271,102
1 6 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 3 73 Mean Carry Bps 3 79 3 87 1 94 1 04 28% Carried Interest Calculator 28/72 Female vs Male Participants
INVESTMENT PROFFESIONAL
Vice President 2
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ 300,000 200,000 100,000 0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 110,317 83,172 403 193,489 100 - 500m 119,780 90,306 4.12 210,086 500 - 1bn 132,009 99,526 423 231,535 1 - 10bn 143,171 107,942 233 251,113 10bn+ 157,342 118,625 147 275,967
1 7 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 4 03 Mean Carry Bps 4 12 4 23 2 33 1 47 24% Carried Interest Calculator 24/76 Female vs Male Participants
INVESTMENT PROFFESIONAL
Vice President 3
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ £300,000 £200,000 £100,000 £0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 114,416 92,095 416 206,511 100 - 500m 124,230 99,994 4.26 224,224 500 - 1bn 136,913 110,203 453 247,116 1 - 10bn 148,491 119,522 251 268,013 10bn+ 163,188 131,352 176 294,540
1 8 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 4 16 Mean Carry Bps 4 26 4 53 2 51 1 76 21% Carried Interest Calculator 21/79 Female vs Male Participants
INVESTMENT PROFESSIONALS
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 10 years 11 years 12 years
Relevant experience levels:
Titles
Experience (relevant experience) is based on post-graduate, relevant experience
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
Bonus low: £60,000
Bonus high: £250,000
Total comp low: £155,000
Total comp high: £550,000
Carry low: 050
Carry high: 800
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INVESTMENT PROFFESIONAL
Director 1
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ £400,000 £300,000 £200,000 £100,000 £0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 115,932 105,311 607 221,243 100 - 500m 125,876 114,344 6.16 240,220 500 - 1bn 138,727 126,018 5283 264,745 1 - 10bn 150,458 136,674 290 287,132 10bn+ 165,350 150,202 253 315,552
2 0 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 6 07 Mean Carry Bps 6 16 5 283 2 90 2 53 19% Carried Interest Calculator 19/81 Female vs Male Participants
INVESTMENT PROFFESIONAL
Director 2
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ £400,000 £300,000 £200,000 £100,000 £0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 128,364 109,475 503 237,840 100 - 500m 139,375 118,866 6.12 258,241 500 - 1bn 153,604 131,001 5287 284,605 1 - 10bn 166,593 142,079 333 308,672 10bn+ 183,082 156,141 247 339,223
2 1 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 5 03 Mean Carry Bps 6 12 5 287 3 33 2 47 18% Carried Interest Calculator 18/82 Female vs Male Participants
INVESTMENT PROFFESIONAL
Director 3
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ £400,000 £300,000 £200,000 £100,000 £0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 137,965 117,815 604 255,780 100 - 500m 149,799 127,921 6.13 277,720 500 - 1bn 165,092 140,981 524 306,073 1 - 10bn 179,053 152,903 434 331,955 10bn+ 196,775 168,036 277 364,811
2 2 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 6 04 Mean Carry Bps 6 13 5 24 4 34 2 77 26% Carried Interest Calculator 26/74 Female vs Male Participants
INVESTMENT PROFESSIONALS
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 13+ years+
Relevant experience levels:
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
Bonus low: £80,000
Bonus high: £700,000
Total comp low: £255,000
Total comp high: £1,050,000
Carry low: 200
Carry high: 2500
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INVESTMENT PROFFESIONAL
Jnr Partner
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
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ £500,000 £400,000 £300,000 £200,000 £100,000 £0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 182,256 155,605 7012 337,861 100 - 500m 197,889 168,952 7.16 366,841 500 - 1bn 218,092 186,201 5283 404,293 1 - 10bn 236,534 201,947 439 438,481 10bn+ 259,946 221,934 353 481,880
2 4 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 7 012 Mean Carry Bps 8 16 5 283 4 39 3 53
Carried Interest Calculator 20/80 Female vs Male Participants
20%
INVESTMENT PROFFESIONAL
Mid-Level Partner
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
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ £600,000 £400,000 £200,000 £0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 234,077 159,433 807 393,509 100 - 500m 254,155 173,108 8.16 427,263 500 - 1bn 280,102 190,781 7444 470,883 1 - 10bn 303,788 206,914 539 510,702 10bn+ 333,856 227,393 553 561,249
2 5 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 8 07 Mean Carry Bps 8 16 7 444 5 39 5 53 11% Carried Interest Calculator 11/89 Female vs Male Participants
INVESTMENT PROFFESIONAL
Senior Partner
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.
Less than 100m 100 - 500m 500 - 1bn 1 - 10bn 10bn+ £750,000 £500,000 £250,000 £0 Fund AUM Mean Base Salary Mean Bonus Mean Carry Mean Total Compensation Less than 100m 268,279 200,573 1007 468,852 100 - 500m 291,291 217,778 9.16 509,069 500 - 1bn 321,029 240,011 8283 561,040 1 - 10bn 348,176 260,307 739 608,483 10bn+ 382,637 286,071 753 668,708
2 6 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS 10 70 Mean Carry Bps 9 16 8 283 7 39 7 53 14% Carried Interest Calculator 14/86 Female vs Male Participants
F I N D I N G S
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, Credit, 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?
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
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01
CONCLUSIONS
What are the key influencers set to drive hiring over the next year?
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
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02
CONCLUSIONS
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.
How can you stay competitive in an evolving hiring market? 2 9 PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS
S P A R T N E R S
Ed Chamberlain, Partner
Patrick Gee, Principal IR & Distribution
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
A L T
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. Altus Partners 90 High Holborn, Holborn, London, WC1V 6LJ (0) 203 137 3250 www.altus-partners.com info@altus-partnerscom Practice Team
U
Private Equity
PRIVATE EQUITY SALARY REPORT 2023 | ALTUS PARTNERS
