Good news for those seeking jobs in private equity. Salaries and bonuses for private equity professionals in North America continued to rise through 2007 and into 2008, according to the latest edition of the Private Equity Analyst-Holt Compensation Study, which appeared in Private Equity Analyst, a newsletter published by Dow Jones & Co. The survey shows salaries rose 5.3% to $200,000. When you include bonuses and carried interest, compensation packages climbed a total of 27.3% to $401,000 from $315,000. These figures reflect salaries as of April 1, 2008 and bonuses reflect performance in 2007. Figures cover investment and administrative personnel at independent and institutional buyout, venture capital and mezzanine firms. Median compensation for managing general partners, senior partners and partners, including salary, bonus and carried interest, was listed at $1.3 million, up 18%. While the median compensation at venture capital firms was $956,000, up 37%. Whether compensation will continue at these robust levels through the remainder of 2008 is an open question, however. The credit crunch and economic downturn in the U.S. have already impacted hiring at many firms. Observers also note that while salaries may not decline, economic conditions will likely affect bonus pools.

Employers have two issues to deal with. First (and presumably most important), employers should take a hard look at current compensation plans of the top performers in the firm. Compare plans to current industry standards and discuss specific compensation expectations with the employee. If there is a gap between the employee’s expectations and the current plan, make closing that gap a priority or risk losing that team member to a more competitive firm.

Second, when courting potential new employees, there is an opportunity to differentiate the firm by offering something better, especially to newly minted MBA’s. In addition to base salary, consider more attractive variable compensation and a share in the upside through carry participation. Discuss the typical partner path and earnings targets (both short and long term), and consider anonymously sharing some compensation ranges earned by the top 10% in the previous year to demonstrate what is possible in the firm.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

For job seekers, we suggest taking a close look at the new compensation plan before you make a move. Gather as much information as possible in the interview process about past fund performance and determine how the proposed package will measure up to your specific expectations.

Talk to others in the firm. Ask about turnover and get any promises made in the interview process in writing before accepting an offer. There is significant income to be made but you need to be with a firm long enough to share in the upside. In addition to cash compensation, consider the culture and the work environment.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

Unlike our findings in the hedge fund industry, where employees in the UK earn higher compensation, the players in venture capital and private equity jobs in the US and UK are earning similar total compensations. The base salaries of professionals in the UK are 6% more than their US counterparts; the bonus package in the US, however, makes up for the 6% difference. The compensation gap widens when considering the cost of living as it currently costs 25% more to live in London than in NYC. Another interesting fact to note is that the vacation benefit in the UK is greater by 1 ½ weeks.

Professionals, both in the US and UK, claimed that they are able to strike a good balance between their personal and professional lives. More than 53% of the respondents from these two countries claimed that they are doing a better than average job of balancing their lives. About 20% in each claimed that their work/life balance was excellent. None of the respondents in the UK claimed that they were poorly balancing their work/life balance and only 3% in the US were doing a poor job of striking a balance in their lives.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

More than 54% of the respondents are entitled to 4 weeks or more of vacation time and 28% of respondents stated they get 3 weeks of vacation indicating that there is plenty of vacation time across the board. It is not clear, however, how much of this vacation time is actually taken each year.

49% of the respondents actually feel that they are doing a better than average job of achieving balance in their lives. Only a small minority of stated that they strike a poor balance between their work and personal lives. 38% of the respondents stated that the work/personal life balance is average. As a point of comparison from other studies, this data shows the work/life balance achieved here is better than that of those employed in the hedge fund industry.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

With regard work experience that they have, it is found that nearly half the respondents have a solid 10+ years of experience and 69% have more than 7 years of experience.

Last year, compensation increases followed solid industry performance. About 2/3 of the respondents got a hike in their compensation last year. 28% of the respondents’ salaries did not change and the remaining 5% saw a decrease in their compensation. The expectations among professionals for future performance are even higher this year as 77% of the respondents are confident about getting a raise and only 3% expect to see a decrease.

From the 2007 Private Equity and Venture Capital Compensation Report by Job Search Digest

According to the Wall Street Journal Blackstone Group hired Merrill Lynch’s Laurence Tosi into a Private Equity Job as its chief financial officer.

The private-equity firm’s current CFO, Michael Puglisi is staying at Blackstone and will work on special projects for the firm.

Global emerging markets private equity investment firm which currently manages $2 billion in assets. Responsible for Quantitative Analysis and Reporting, Corporate Support, Marketing Production, and Market Research. 5+ years of relevant experience, preferably in a business development, investment management or marketing capacity required.

An exclusive private equity job from JobSearchDigest.com

A leading private equity firm with multiple large funds seeks an experienced financial professional to join their organization as SVP Fund Administration. The SVP Fund Administration will oversee a large group of financial professionals (20+) responsible all aspects of fund accounting and administration for the organization. Ideal candidates should possess 10 plus years of related financial management experience either with in the alternative investment industry directly or with a service provider, public accountant, or third party administrator.

An exclusive private equity job from JobSearchDigest.com

A division of a large bank’s Private Equity Group, originates, executes and manages private equity investments. In addition to earning an attractive return on capital, investments are made with the goal of generating ancillary benefits for the Bank. The targeted investment size ranges from $5 to $50 million with returns dependent on risk.

Associate plays a key role in the evaluation and execution of potential investments as well as in the management and analysis of liquidity events of current portfolio investments. The relatively small size of the group offers analysts the unique opportunity to immediately assume significant responsibilities and to work closely with senior members of the team.

Candidates should have approximately two years of investment banking or private equity experience. This is a pre-MBA position. Candidates should have graduated in the top of their class from a well-regarded undergraduate program.

An exclusive private equity job from JobSearchDigest.com