Heidrick & Struggles: Private Equity Compensation Trends in North America: 2016

Heidrick & Struggles recently published their 2016 North American Private Equity Investment Professional Compensation Survey report. The report focuses exclusively on compensation for investment professionals working at private equity firms making direct investments in North America. 

Heidrick & Struggles compiled data from respondents at 380 direct private equity firms about their base salaries, bonuses, and carried interest plans. These respondents held positions across the value chain, including associates/senior associates, vice presidents, principals, partners/managing directors, and managing partners.

Overall compensation increased for private equity investment professionals at all levels. In 2016, Vice Presidents experienced the largest base salary increase with 10% growth to $196,000 from $178,000 in 2015. While Partners/ Managing Directors reported an increase of 5.6% in 2016. The continued upward trend in compensation is largely the result of private equity’s resilience in recent years, including higher levels or fund-raising, deal making, and exit activity.

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