A Look at Average Salary Increases in PE, VC, and CVC

June 24, 2019

Average salaries in the private equity (PE), venture capital (VC) and corporate venture capital (VC) are generally high compared to other professions. How well did industry pay do last year and what is expected this years?  A look follows.

Average Pay Growth in PE, VC, and CVC

What is expected to happen with average pay at PE, VC, and CVC firms in 2019?  Is average pay anticipated to grow faster than average economywide pay growth of around 2.5 percent?  The following chart from private equity data provider Pitchbook provides one look at the figures.

According to Pitchbook, the average salary increase for a director/principal in 2019 is 14 percent.  This is tops among the job categories reported by Pitchbook.

Three job titles come in tied for second place at 12 percent.  They include managing, general partner; managing director, partner; and associate.

The job titles rounding out the list include senior managing direct, senior partner and senior associate.  According to the respondents, the average pay increase in 2019 was expected at 11 percent. Overall, a very, very healthy year for pay growth at private equity, venture capital, and corporate venture capital firms.

Some Details on CVC Pay Growth

Perhaps the most interesting area of the reported figures is the corporate venture capital area.  The area is rarely reported as separate from venture capital, but in reality it definitely is a separate area of the investment world.

The following takes a deeper look at the data.

Interestingly, the average pay increase for CVC employees among the four depicted job categories is 6 percent for 2019.  These four job categories include analyst, associate; CFO, portfolio management; CV unit leader; and senior investment professional. 

The 2019 figures are relatively low for the industry as a whole.  Interestingly, the 2018 figures were higher than the 2019 expected figures.  Of the four job categories, 2018 was most kind to CVC unit leaders.  CVC unit leaders saw average salary increases of 8 percent in 2018.  Not far behind were CFO/portfolio management/senior investment professional at 7 percent.  Coming in last place were the analysts/associates at 6 percent pay growth.  Overall, all job categories are anticipated to have another good 2019 on top of a healthy 2018.

Conclusion

Pay is expanding at a healthy pace in the PE, VC, and CVC industry.  With average pay across the country expanding by around 2.5 annually, pay is anticipated to grow twice that pace at PE, VC, and CVC firms in 2019.  It’s a good time to be connected with private equity and venture capital.  Then again, is it ever a bad time?

Leave a Comment

Previous post:

Next post:

Real Time Web Analytics