MM&K 2025 UK/Europe Private Equity & Venture Capital Compensation Insights

MM&K’s annual Private Equity and Venture Capital Compensation Survey continues to provide one of the most comprehensive analyses of remuneration trends across the industry. Drawing on data from a wide cross-section of firms, the survey captures salary movements, bonus structures, long-term incentives (LTIs) including carry, and broader talent dynamics shaping the market. The 2025 findings highlight a UK market that remains competitive, growth-oriented, and increasingly focused on long-term alignment.

As firms navigate evolving economic conditions and heightened competition for talent, the latest data underscores both resilience and strategic recalibration in compensation practices.

Strong Salary Momentum in the UK

In 2025, the median salary increase across all UK investment managers stands at 9%, reflecting sustained upward pressure on base pay. This uplift signals continued competition for high-calibre investment professionals, even as deal activity and fundraising conditions vary across strategies.

The 9% median increase represents a notable commitment by firms to retain and motivate talent amid rising expectations and greater mobility within the market. While bonus pools remain sensitive to performance and realizations, base salary growth demonstrates confidence in the long-term outlook of the sector.

Long-Term Incentives: Growing but Selective Adoption

Long-term incentive participation among UK investment professionals continues to evolve. In 2025, approximately 20% of firms offer LTIs to investment professionals in the form of: performance shares, stock options, and/or restricted stock.

While carried interest remains a core component of long-term reward in private equity, these additional LTI structures provide alternative mechanisms for alignment and retention — particularly in venture capital, growth equity, and platform-based investment models.

The relatively selective adoption (20% of firms) indicates that while equity-based LTIs are becoming more visible, they are not yet universal. Firms appear to be balancing the benefits of equity participation with governance considerations and ownership structures.

Recruitment Trends: Renewed Focus on MBA Talent

Around 40% of UK private equity and venture capital firms are recruiting MBA graduates in 2025. This continued appetite for MBA talent reflects firms’ strategic emphasis on analytical depth, global perspective, and structured leadership development.

MBA hires often enter at Associate or post-Associate levels, bringing with them sector specialization, cross-border experience, and strong financial modelling skills. The data suggests that despite evolving career pathways — including direct-from-undergraduate recruitment and operational hires — the MBA remains a valued credential within a significant portion of the UK market.

Looking Ahead

The 2025 findings reinforce the UK’s position as a dynamic and competitive private capital market. Compensation strategies are evolving in response to talent scarcity, investor expectations, and strategic growth priorities.

As firms continue to navigate market cycles, the interplay between base pay growth, recruitment strategy, and long-term alignment mechanisms will remain central to sustaining performance and retaining top-tier investment professionals.

MM&K’s Private Equity and Venture Capital Survey provides critical insight into these trends, helping firms benchmark effectively and adapt to an increasingly sophisticated compensation environment.

Download a preview of the European report here

The 2025 European Compensation Report is available to participants only. To find out how you could become a participant, or for information and independent advice, please contact Margarita Skripina

If you are interested in the N. American picture instead, please click here for a preview of the 2025 N. American Compensation Report.

Download a preview of the North American report here

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