Private Equity Remuneration
MM&K is the leading UK and European based adviser in the field of private equity and infrastructure fund management firms’ compensation structures and levels.
MM&K advises PE, VC and Infrastructure Fund Management businesses on the make-up and the design of their remuneration structures covering the whole ambit of pay and reward in both independent and captive houses. To support our capabilities in this area we also conduct a market leading annual survey of pay data in this sector.
Over the years we have advised a significant number of PE, VC, Infrastructure and Real Estate fund management businesses, both listed and private, captive and independent, on the design and structure of their remuneration policies, covering base pay levels, partner drawings and profit shares, annual bonus plans, carried interest and co-investment structures as well as other long-term incentive arrangements. We started advising in this area in the late 1980s and have been at the forefront of the design of carried interest plans for these types of businesses.
Typical projects include:
- Tailored remuneration benchmarking projects
- Design of Investment Team remuneration policy
- Advice on succession planning – the deal for exiting partners
- Bonus scheme design – for investment team and back office
- Carried interest plan design – typically in captive or partly captive entities
- Advice on design of co-investment plans for the investment team
Examples of recent client consulting projects include:
- Providing advice to the Remuneration Committee of a listed private equity investment company on the deal for the investment professionals and the design of the variable pay structures (including carry and LTIPs) therefore
- Providing pay and carry benchmark advice to a successful independent mid-market buyout fund manager looking to raise its third fund
- Providing market benchmark advice on pay and carried interest participation levels to a major UK based Buy Out Fund
- Providing pay and carry benchmark advice to a new independent UK based private equity team raising their first fund
MM&K PE and VC Compensation Survey
MM&K has been producing surveys of compensation in the alternative asset management sector since 1996. Our surveys cover the whole range of compensation and benefits data whilst also including detailed analysis and incisive commentary. Reports are written by consultants who are able to draw upon their experience of working with clients on Private Equity Remuneration projects.
In 1996, at the request of some of its PE clients, MM&K produced the first ever survey dedicated to carried interest plans and co-investment plans within the UK and European private equity/venture capital industry. The survey, which is produced annually, now covers the whole ambit of compensation and benefits data whilst maintaining the detailed analysis and commentary on incentive plan practice and design.
2020 Private Equity & Venture Capital Survey – Participate
Our survey offers a comprehensive market view of competitive compensation strategies across the private equity sector. The focus to includes Real Estate and Infrastructure funds. The survey covers all aspects of compensation, including salaries, bonuses, carry and co-investment plans, as well as a broad range of human capital and staffing questions.
How to purchase the Report. The MM&K Private Equity and Venture Capital Compensation Report offers a comprehensive market view of competitive compensation strategies across the Private Equity and Venture Capital sector.
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