New hires in Private Equity: By the numbers
11% of incumbents in our 2022 database are new hires
22% of new hires were:
- Investment Analyst
- Junior Investment Manager
New hire compensation in the Private Equity:
In the UK, Investment Analysts can attract higher salaries due to the competitive talent market
In Benelux (Belgium, Netherlands and Luxembourg), new Investment Analyst and Junior Investment Manager hires can be paid 10% more than existing incumbents
Year-on-year salary increases
| Location | Investment Analyst | Junior Investment Manager |
|---|---|---|
| UK | 10% | 8% |
| Benelux | 9% | 3% |
| North America | 5% | 6% |
| France | 5% | 5% |
| Germany | 2% | 3% |
Job functions with the highest base salary increases
Benelux- Deal Origination
- Fund Accounting
- Human Resources
- Deal Origination
- Legal
- Financial Accounting
- Risk Management
Roles most likely to be included in carried interest plans
| Senior Management | Investment Team | Deal Origination |
|---|---|---|
| (Chief Executive Officer / Managing Partner, Chief Financial Officer, Chief Operating Officer) | (Senior Director/Partner, Director/Partner, Senior Investment Manager) | (Director/Partner) |
Pay elements for investment teams
United Kingdom:
| Role in investment team | Base Salary | Bonus | Carried interest (illustrative) |
|---|---|---|---|
| Analyst | 76% | 24% | 0% |
| Junior Investment Manager | 58% | 34% | 7% |
| Investment Manager | 54% | 35% | 11% |
| Senior Investment Manager | 42% | 36% | 22% |
| Director/Partner | 37% | 37% | 26% |
| Senior Director/Partner | 32% | 30% | 38% |
Benelux:
| Role in investment team | Base Salary | Bonus | Carried interest (illustrative) |
|---|---|---|---|
| Analyst | 85% | 15% | 0% |
| Junior Investment Manager | 73% | 13% | 14% |
| Investment Manager | 65% | 14% | 21% |
| Senior Investment Manager | 49% | 9% | 42% |
| Director/Partner | 39% | 14% | 47% |
| Senior Director/Partner | 34% | 16% | 50% |
North America:
| Role in investment team | Base Salary | Bonus | Carried interest (illustrative) |
|---|---|---|---|
| Analyst | 76% | 24% | 0% |
| Junior Investment Manager | 59% | 33% | 8% |
| Investment Manager | 50% | 40% | 11% |
| Senior Investment Manager | 42% | 39% | 20% |
| Director/Partner | 28% | 52% | 20% |
| Senior Director/Partner | 35% | 35% | 30% |
The role of annual bonuses
In the UK and North America, bonuses are a significant component of the overall pay package, while bonus levels in Benelux, France and Germany are a smaller proportion of the overall pay mix.
Annual bonus as a percentage of base salary for Investment Analyst:
| Year | Benelux | France | Germany | North America | United Kingdom |
|---|---|---|---|---|---|
| 2021 | 5% | 20% | 5% | 30% | 39% |
| 2022 | 17% | 21% | 14% | 32% | 31% |
Annual bonus as a percentage of base salary for Junior Investment Manager:
| Year | Benelux | France | Germany | North America | United Kingdom |
|---|---|---|---|---|---|
| 2021 | 13% | 21% | 12% | 47% | 64% |
| 2022 | 17% | 31% | 15% | 51% | 55% |
| Annual bonus movement across all roles | Increased | No change | Decreased |
|---|---|---|---|
| Benelux | All roles | ||
| France | Most roles | Director/Partner | |
| Germany | Most roles | Investment Manager | |
| North America | Junior and Mid-level Investment roles | Director/Partner and Senior Director/Partner | |
| United Kingdom | Senior Director/Partner | Up to Director/Partner |
Trends that will drive rewards decisions
- Economic volatility and uncertainty may force organizations to review their workforces and be more cautious about increasing fixed elements of compensation, like base salaries.
- Organizations will look beyond pay and take a holistic view of total rewards to create employee experiences that attract and retain the talent needed to drive business objectives.
- To effectively compete against industry peers, compensation and HR professionals will seek a more sophisticated understanding and application of data in their strategic total rewards practices and policies.
Source: 2022 WTW Private Equity Compensation Surveys
Download
| Title | File Type | File Size |
|---|---|---|
| Pay trends in Private Equity - Infographic | .1 MB |
Related content tags, list of links
Infographic
Beyond Data
Compensation strategy and design
Private Equity
Beyond Data
