The MM&K 2022 European Private Equity and Venture Capital Compensation Report has now been published
November 22, 2022
We are delighted to announce that we have recently published 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. One new addition to this year’s report includes the introduction of three ESG roles, which we expect to see becoming more common in the upcoming years, as firms focus more energy into their sustainability practises.
The survey covers both short-term and long-term aspects of pay and incentive practice from our 48 participants in the private equity, venture capital and infrastructure fund management space, including in fund-of-funds and secondaries. The short-term compensation 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.
Interestingly, 75% of all firms are expecting an increase in the number of Investment Professionals in the second half of 2022 with no-one expecting a decrease; a contrast to last year with 95% expecting an increase and 5% for a decrease. This is similar for Admin staff with 70% of firms expecting an increase and no-one expecting a decrease.
This year also showed slight changes in the amount of PHI and PMI offered to all employees from Partner to Admin Levels. In 2022, there was around a 2% decrease and 1% increase in PHI and PMI, respectively.
The survey report is available to participants only, although new participants can purchase the latest edition if they sign up to participate in our 2023 Survey.
For further information, please contact Margarita Skripina.