MM&K has published its 2024 European Private Equity and Venture Capital Compensation Report

We, at MM&K, are delighted to announce that the 2024 PE/VC Compensation Report has recently been published. The 2024 Report sets out our findings from our 2024 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 from our 46 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 1,800 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
• All Venture Capital / Corporate Venturing
• Small and Mid Market 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.

While the post-COVID enthusiasm, in terms of deal activity, has begun to wane, dealmaking in European Private Equity (PE) saw a resurgence in Q2 of 2024. Similarly, the UK market experienced its strongest deal value in the last couple of years during Q2, signalling a market recovery. Despite these optimistic results, recent political changes could prove pivotal for the UK Private Equity sector. In particular any adjustments proposed by the new Labour government to capital gains tax rates could have a significant impact on the UK talent pool. 

Data from the 2024 MM&K Private Equity and Venture Capital European Compensation Report show that around 45% firms indicated increasing the number of investment professionals and administrative staff in 2024. Looking forward, just over 50% of firms are planning to increase the number of investment professionals next year (in 2025), with 39% of firms expecting to expand the support function.

The Base Salary increases varied from 0% to 12% for investment professionals, with an average increase of 8% below partner level. For non-investment roles, the Base Salary increases range is wider, from 3% to 15%.

Download a preview of the European report here

The survey report is available to participants only. To find out how you could become a participant or for further information, please contact Margarita Skripina.

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