![]() ![]() Given the spikes in cash compensation at junior levels this year, we expect to see the balance moving back toward senior professionals in the medium term.We also expect hiring to rebound at least to pre-COVID levels in the medium to long term.We expect some slowing in hiring in the near term, particularly given how much hiring firms have already done over the past few years but also as a result of larger macro issues and the increased cost of leverage.These numbers are not likely to be repeated in 2022 and are considered outliers. Many of the high points in the compensation section across different funds include one-time cash payments for the year of 2021 bonuses.Candidates who are diverse are seeing increases in cash compensation ranging from 50% to 200%.This is a fairly consistent pattern across all funds. For example, at firms with $4 billion to $5.99 billion in AUM (the largest for which we have comparative data across all titles), median base cash compensation for associates rose 26% between 20 and only 15% for managing partners. Given the competition for junior investment professionals, cash compensation for them has risen notably.Candidates who are diverse have been particularly sought after at all levels.At more senior levels, hiring is also active, mostly to drive expansion into new sectors or strategies.The market has been particularly active at the more junior levels, where firms have needed more people to execute, and the time to hire has shrunk markedly, from months to weeks.2022 is shaping up to be materially busier than last year, which, in and of itself, was a record year.2 This is only slightly off the $179.6 billion raised at this time last year. 1Īs of the end of Q2 2022, US PE firms have raised $176 billion across 191 funds in what is possibly the most crowded fundraising market in history. The past 12 months have continued to be extremely active: In the first half of 2022, US PE firms completed approximately 4,000 deals, with a cumulative value of just over $400 billion. This year’s survey includes a review of trends in private equity markets, hiring, and compensation after half a year of intense market volatility. As always, suggestions are welcome, so please feel free to contact us-or your Heidrick & Struggles representative-with questions and comments. We hope you enjoy reading the survey, which remains the only one of its kind. Together with our survey of private equity operating professionals (published earlier this year), this report provides a comprehensive picture of the compensation that North American private equity executives are currently receiving.įor this report, Heidrick & Struggles compiled compensation data from a survey of 939 investment professionals in North America. Welcome to our 2022 North American Private Equity Investment Professional Compensation Survey.
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