Remuneration trends in the Private Equity Industry: UK / Europe vs N. American perspective

MM&K has completed its 2025 Private Equity & Venture Capital Pulse Survey, providing an analysis of pay trends—including salary adjustments and bonus payments—across the UK’s private equity and venture capital fund management industries. The findings offer valuable insight into the evolving remuneration landscape, particularly for investment professionals, and set the stage for trends expected in 2025.

This year continues to present economic and market-related challenges for many firms, impacting their ability to implement salary increases. The 2025 Pulse Survey results indicate that the salary adjustments anticipated in the 2024 Report have not materialised to the extent initially expected. Specifically, 13% fewer firms than projected have introduced salary increases at this review stage, with a larger proportion choosing to maintain existing pay levels rather than implementing uplifts. This suggests a cautious approach to fixed-cost increases in the face of ongoing market uncertainty.

As firms navigate these financial constraints, bonuses have proven to be a more flexible tool for managing total compensation while aligning rewards with individual and company performance. Interestingly, while the Pulse Survey findings highlight a significant trend towards reduced bonus payouts— with 19% more firms lowering bonuses than initially anticipated—there is also a contrasting development. Notably, 14% more firms than expected have increased bonus payouts, suggesting that some organisations are leveraging bonuses strategically to retain key talent and incentivise performance despite broader economic pressures.

The 2025 Pulse Survey results indicate that firms are prioritising stability in a challenging market, with a measured approach to compensation adjustments. As we move towards 2025, these trends will be key considerations for firms looking to remain competitive while managing financial prudence in an evolving investment landscape.

To find out more in terms of what is happening to pay levels in this sector, relevant firms are invited to participate in our main PE and VC Compensation Survey, the results for which will be published in September 2025.  For firms that are interested in participating in our detailed 2025 survey, please get in touch with Margarita Skripina margarita.skripina@mm-k.com, or click here.

2025 Private Equity & Venture Capital Compensation Survey

MM&K is going to launch the 30th edition of the Private Equity & Venture Capital European Compensation Survey later in May 2025.

The detailed Private Equity & Venture Capital Compensation Survey will offer a more comprehensive analysis of the nuances in industry compensation.

Through participation in our survey, participating firms are able to acquire the full report that will provide invaluable compensation information and data, enabling firms to:

• ensure their pay levels are market competitive
• make informed choices on remuneration structures and policies for their business
• have informed conversations on remuneration with partners and employees
• improve staff motivation, retention and morale.

The European Survey covers 53 investment and non-investment roles.

If you are a partner or an executive in a Private Equity / Venture Capital/ Infrastructure or Real Estate Fund Management business and you believe that your firm might benefit from participating, please contact Margarita Skripina or request your questionnaire here surveys@mm-k.com.

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