All that cash flowing into private equity is trickling down in the form of double-digit compensation package increases for high-in-demand professionals, according to research by Glocap Search and Thomson Financial. The 2007 Private Equity Compensation Report found that senior associates and vice presidents can expect to see their total compensation rise by 16% and 18%, respectively, while principals can expect a 9% increase. Toilers in venture capital can expect similar boosts, too, according to the report, with v.ps. receiving 17% more, followed by senior associates and associates, both up 12%. “It’s been an exciting and dynamic year, and the competition for top talent has been as strong as we’ve ever seen it,” says Glocap senior partner Brian Korb. “There are few signs that the frenzied competition for talent is letting up.” Or even for the hoped-for talent, it seems. The study found that business school graduates hired by large leveraged buyout funds as senior associates are offered compensation packages of more than $375,000.
In other results, the Glocap/Thomson report found:
- Some large venture capital funds are introducing a more bonus-heavy structure.
- Larger funds of funds are having to up compensation in order to attract and meet the demand for hires with analytical/investment skills.
- Bonuses for senior associates at funds of funds have soared 18%, with larger funds ($1.5 billion or more) increasing bonuses by 28%.