The annual Private Equity Jobs Digest Compensation Reports are based on surveys designed to capture valuable compensation information directly from those directly involved in private equity and venture capital. Over the years, we have surveyed many partners, principals, vice presidents, associates and others from investment firms, both large and small.
The complete report is sold on www.PrivateEquityCompensation.com and is available to our Premium Members for no additional cost.
Here we summarize the results of the private equity compensation surveys to include some of the earnings data and other findings. The reports address issues such as the compensation earned by professionals and their work satisfaction. The reports also reveal how these professionals perceive their work and what they expect from their employers.
The 2013 Private Equity and Venture Capital Compensation Report demonstrates that the private equity and venture capital markets are continuing to enjoy increases in compensation and that 2013 will bring additional compensation increases. It seems this new focus in private equity has resulted in a competitive market for talented investment professionals. More than half of respondents expected their cash compensation to increase over last year, and more than 40 percent expected to wrap the year end with double digit increases.
2011 saw a solid level of earnings for most private equity and VC professionals. Compensation for just about every partner and employee at the firm is up and many are enjoying double digit increases in total compensation. We believe this upward compensation trend will continue in 2012.
Last year brought with it a higher number of deals and exits than in the previous year. These renewed activity levels have led to higher comp for just about every professional in the firm. This is even more evident at the larger firms where economies to scale result in a larger earnings across nearly all levels. In a year when the large private equity firms complained they had been priced out of the market for deals, investment professionals reported a solid improvement in total earnings.
Despite the market turmoil over the past couple years, the private equity industry continues to make strides forward, with thousands of existing firms and new firms being established each year. The 2010 report signals better times ahead. The U.S. still leads the way in private equity as reflected again in this year’s report. Although all levels are represented, you will find that mid-career, experienced professionals account for the majority of the respondents.
Note: Over the years, we’ve received many comments about confusion regarding the timing of the data. This year, we have changed the report title date to better reflect the timing. The 2010 Compensation Report is based on the data collected in Q4 2009 from industry professionals.
With the shift in the financial markets, the 2008 Report indicates that private equity and VC professionals see further trouble on the horizon. This year’s private equity and VC report reveals significantly more professionals are satisfied with their current level of compensation. This is drive by two factors: a solid increase in pay and concern about their future. Unlike last year, job security is an issue in private equity and venture capital. The primary concern is with the firm’s ability to raise the next fund.
We surveyed hundreds of professionals who were involved with venture capital or private equity investment firms from around the world. We had participation from firms both large and small such as: Credit Suisse, Labrador Ventures, Intel Capital, Mayfield, New Enterprise Associates, and SoftBank Capital. 2007 Private Equity and Venture Capital Compensation Report details
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