Private equity and venture capital firms based in the U.S. have seen a surprising increase in their bonuses, salary and other forms of compensation since the end of 2014. According to GoBuyside, a premier talent recruiting platform, one factor behind this trend could stem from how the private equity firm itself calculates their bonuses. Bonuses are commonly based on either the overall performance of the firm, an employee’s individual performance or fund performance. The 2018 Private Equity Compensation Report showed that top private equity firms that had over a billion dollars of assets under management, generally gravitated towards the fund performance metric for calculating bonuses. Follow GoBuyside on Facebook.
— GoBuyside (@gobuyside) June 29, 2018
GoBuyside also stated that the high demand for fresh investment management talent has also helped influence the increase of bonus payment over the years. These talents are now looking to work for larger private equity firms because of their attractive compensation, leaving smaller firms to up their compensation levels. The investment talent that joined larger private equity firms have earned way more cash compensation than their peers placed in smaller firms. This has occurred even when the larger firms had performances down by almost ten percent. The salary base, bonuses and other compensation for industry professionals had consecutively jumped up 6 to 8 percent each year. Follow GoBuyside on Instagram.
GoBuyside is a 21st century global talent platform based in New York, New York. The firm specializes in recruiting niche talent for private equity firms, Fortune 500 companies, investment managers, hedge funds, advisory platforms and a variety of others within the financial industry. Many clients have entrusted GoBuyside to deliver top-tier talent on demand since its inception. They have a massive talent network of over 100,000 individuals that expands to over 10,000 firms across 500 cities worldwide. The talent recruitment firm was founded by Mr. Arjun Kapur in 2011.