European private equity pay in 2026: what our survey shows

Our 2026 MM&K–Holt European PE/VC Compensation Report is out. It is the 31st year of the survey. This year it covers 38 private equity and venture capital firms and more than 2,000 employees across the UK and Europe.

The market

It has been a mixed year:

Deal activity recovered in 2025: 8,564 deals worth £475bn, up 27% by value. Fundraising stayed weak. Firms raised £72.7bn in 2025, down from £130.1bn in 2024, and only 174 funds closed, against 270. By 30 September 2026, deals had slowed again, and £56.5bn had been raised across 99 funds. Fundraising is concentrating in fewer, larger funds. Exits have slowed and holding periods are getting longer.

Pay is still rising

Despite the market, firms are still paying to keep their people:

• Median total cash for Investment Partners rose by between some 4 – 10% depending on level.
• Pay for Non-Partner investment roles rose faster, with base salary up in double digits for Analysts and Senior Associates and slightly less for Vice Presidents.
• The largest total cash increase was 20% at Associate level. Some firms are using bigger bonuses to attract junior talent without changing their salary structures.
• For non-investment roles, base salary increases were more modest.

Carry and co-investment

• At the median, around two-thirds of carry goes to Partners, with much smaller allocations in our survey to Non-Partners and  future hire pools.
• Some three quarters of firms use an 8% hurdle.
• Carry is increasingly offered beyond the investment team: about three-quarters of firms offer it to senior support staff.
• A significant proportion of firms offer Partners a co-investment opportunity.
• Interestingly, around a fifth of firms pay Partners no annual bonus, relying instead on other incentive mechanisms.

GP commitment

GP commitment is now standard practice, and around half of firms offer co-investment

Hiring

Firms have become more cautious about hiring this year: Around two-fifths expect to grow their investment teams in 2026, down on last year. Looking ahead however, around half plan to grow investment teams in 2027.

Our view

Fundraising is hard, exits are slow and fees are under pressure, yet pay keeps rising, especially for junior and mid-level investment staff. Firms are protecting the people who do the deal work and are looking to ensure their pay structures are affordable. The full survey is available from MM&K, subject to participation.

MM&K is a leading independent adviser to PE firms and their portfolio companies on the design and implementation of human capital solutions and tailored pay structures. If you are curious and want to purchase the survey, or explore how MM&K could assist your Board to optimise the advantages of aligning pay, strategy and culture, contact Rob Miller (robert.miller@mm-k.com) or Stuart James (stuart.james@mm-k.com).

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