MM&K has published its 2023 European Private Equity and Venture Capital Compensation Report
November 28, 2023
We, at MM&K, are delighted to announce that the 2023 PE/VC Compensation Report has recently been published. The 2023 Report sets out our findings from our 2023 survey of the UK and European private equity, venture capital, infrastructure and real estate fund management industries. A couple of new additions to this year’s report are a gender pay analysis as well as investment team composition.
The survey covers both short-term and long-term aspects of pay and incentive practice from our 50 participants in the private equity, venture capital and infrastructure fund management space, including in fund-of-funds and secondaries. This year we were provided with compensation data covering just under 2,550 incumbents, comprising a mixture of investment and back-office roles.
Throughout the report, firms are classified as a combination of two parameters: type of investment strategy and size (committed capital all active funds). Type and size classifications used include:
- All Firms
- Venture Capital / Corporate Venturing
- All LBO / Growth Equity / Infrastructure / Real Estate
- Small and Mid Market LBO / Growth Equity
- Fund of Funds / Co-Invest / Secondary
The short-term compensation data 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 compensation data 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.
In 2023, firms were planning to increase the number of investment professionals and administrative staff (c60% of firms). Looking forward, 50% of firms are planning to increase the number of investment professionals, while only 30% of firms are planning to expand the support function.
The number of firms that recruit new or recent MBA graduates has decreased by 6% this year.
The Base Salary increases varied from 2.8% to 13.2% for investment professionals, with an average increase of 18.4% below partner level. For non-investment roles, the Base Salary increases range is wider, from 2.5% to 19.2%.
The survey report is available to participants only, although new participants can purchase the latest edition if they sign up to participate in our 2024 Survey.
For further information, please contact Margarita Skripina.
Download a preview of the European report here.