In our many years publishing the annual Private Equity and Venture Capital Compensation Report, both before and after the peak, we’ve seen significant changes in private equity and VC compensation trends. This year, we see some settling in the market.
This year’s report includes actual data from hundreds of partners and employees that represent several hundred private equity and venture capital firms. As we collected the data in Q4, and have not seen significant market events since that time, we have presented the numbers as final.
Much More Than Just Cash Salary Numbers
The Report addresses issues such as base and bonus compensation earned (both by title and by fund size), fund performance and its impact on bonus levels, the many facets of carried interest, satisfaction with pay and job security concerns. The Report also seeks to understand how private equity professionals perceive their work and what they expect from their employers.
Where we could, we included insights from the industry and our detailed experience in the job market. That said, the data points in this report are based solely on data collected directly from private equity and VC professionals.
How Is This Report Different From Other Compensation Reports?
There are several sources for PE and VC compensation information. Here’s a short analysis as to what makes the Private Equity & VC Compensation Report different:
- Independent and impartial: compensation reports are sometimes offered by recruiters or others with an “agenda” other than sharing the most accurate, relevant and up to date information. Our sole purpose is to provide you with the most up to date and useful compensation data.
- Trusted sources: information in the Report is based on our survey of hundreds of partners and employees that represent several hundred private equity and venture capital firms. Some of the participating firms over the years include Bain Capital, Barclays Capital, BlackRock, Deutsche Bank, Qualcomm, RBS, Time Warner Investments and many others – a “who’s who” of PE and VC firms.
- Comprehensive: the Report doesn’t just provide information on cash salary benchmarks, but on all facets of compensation and job satisfaction including base and bonus compensation, fund performance and its impact on bonus levels, carried interest, job satisfaction, vacation days, job security and more.
- Up To Date: the Report is updated annually based on our compensation survey.
- Value For Money: many other reports that offer a much narrower view, are offered for a higher price. The Private Equity & VC Compensation Report is an extremely high-return investment for PE or VC professionals or firms seeking to understand current industry compensation norms and trends.
We feel a responsibility to present a compensation benchmark resource that is comprehensive, reliable and affordable. We know that we met that goal again this year and we hope, after reading the Report and reviewing the over 50 detailed charts and graphs, that you will agree.
The Report addresses core compensation topics, much more than just cash compensation. Some of the big questions answered in this analysis include:
• What are the compensation average and ranges by title?
• What is the balance between base vs. bonus payouts?
• Which titles earn the most and how has their comp changed?
• Who is sharing in carry and at what levels?
• How does fund size and performance affect pay?
We’re confident this report will give you what you need whether you are negotiating your own compensation package or setting benchmarks for your firm’s compensation policies.
David Kochanek, Publisher