The MM&K-Holt 2022 PE and VC Compensation Report is soon to be published
October 12, 2022
We are delighted to announce that we about to publish our latest MM&K PE/VC Compensation Report which sets out our findings from our 2022 survey of the UK and European private equity, venture capital, infrastructure and real estate fund management industries.
The survey covers both short-term and long-term aspects of pay and incentive practice in the private equity, venture capital and infrastructure fund management space including in the fund-of-funds and secondaries space. The short-term compensation aspect concentrates on cash compensation, covering base salary and annual bonus levels as well as the design features of annual bonus plans in this sector.
The long-term aspect concentrates on the design and structure of carried interest and co-investment plans, the general partner commitment requirements and equity participation in the fund management entity and/or the parent company. Emphasis is placed on the levels of carry available to the house and the team and how this is split between the partners, the investment executives and the back office.
This year’s survey has over 44 different firms participating in it, providing information on their own investment strategies, their fee income levels and their reward policies as well as detailed compensation data on all their partners and employees, comprising 1,420 incumbents in a mixture of investment and back-office roles.
In the UK and European market, we are seeing that all firms increased head-count this year, and the majority are planning to increase it further next year.
Furthermore, 30% of firms are expecting bonus levels for their investment professionals to increase at the next bonus round (i.e. for 2022 performance in the main) with as many as 20% of firms anticipating some reduction in bonus levels.
This year, we have also seen a significant increase in salary and total cash levels for investment professionals below partner level.
The survey report will be available to participants only, although new participants can purchase the latest edition if they sign-up and commit to participate in our 2023 Survey.