Remuneration and Market Dynamics in Private Equity: UK & Europe vs US Perspectives – Compensation Shifts

UK & European Private Equity: Managing Compensation Across Roles

In the UK and Europe, private equity firms are focusing on strategic remuneration across different levels to sustain talent during uncertain markets. The 2025 MM&K survey highlights that:

• Investment Partners experienced a 6% increase in total cash compensation, including base salary and most recent bonuses.
• Senior Associates saw a 6.4% increase in base salary, partially offset by reduced bonuses, resulting in a more modest total cash change.
• Across investment roles, base salary adjustments ranged 0–7%, while non-investment roles saw increases of 0–6%, reflecting a disciplined approach to cost management amid revenue uncertainty.

The adoption of GP commitments ensures senior managers maintain alignment with fund performance, reinforcing long-term retention strategies. Firms appear to balance prudence in cost management with targeted increases at senior levels, ensuring critical roles remain motivated and incentivised.

Insight: UK and European compensation strategies show a clear focus on sustaining senior talent while carefully managing fixed costs. Even in a more challenging market, firms are rewarding performance and ensuring alignment with long-term fund objectives.

Download a preview of the European report here

US Private Equity: Role-Level Variations and Market Impact

US private equity shows greater differentiation in compensation across roles, reflecting firm size and fund scale:

• Associates and Vice Presidents faced base salary reductions of 8.7% and 10%, respectively, highlighting selective cost discipline at junior levels.
• Senior Associates benefited from a 6.4% base salary increase, partially offset by lower bonuses, resulting in a net 3.5% decline in total cash compensation.
• Senior Partner and Senior Managing Director roles saw a 7% base salary increase, while Managing General Partner and CEO salaries rose by over $130,000 year-on-year.
• Mid-level operational roles, including COOs, experienced bonus reductions, for example, from $1,000,000 to $825,000.
• C-suite total compensation remains robust: CEO +11.3%, CFO +13.5%, showing sustained investment in top-level leadership.

Insight: In the US, compensation growth is concentrated at the top, with mid-level and operational roles adjusting to broader market pressures. This structure reflects a combination of fund-scale effects and strategic focus on retaining senior leadership in highly competitive markets.

Download a preview of the North American report here

For further information, please contact Margarita Skripina margarita.skripina@mm-k.com or Surveys@mm-k.com.

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