Monday, December 06, 2004
Private Equity 2004 Comp Survey
Bonus-babies increase in private equity sector
posted on Monday 6 Dec 2004 03:40 EST
From Buyouts - see full story (subscription required)
Buyouts reports, the high level of activity seen in all areas of private equity, has steadily increased bonus levels. Total compensation in the past year has soared higher across the board, with increases of roughly 25% against last year’s levels for analysts and associates and as high as 65% for professionals in the principal ranks.
In the past 18 months for example, The Carlyle Group and KKR have purportedly returned a total of around $15.6 billion to limited partners, while some firms such as ABRY Partners have seen enough success to hike up the carried interest on new funds to 30%.
According to the “2005 Investment Benchmarks Report: Private Equity Compensation,” a new study released by Venture Economics and Glocap Search LLC, total compensation levels are up significantly. At the analyst level, the average total compensation (comprised of base salary and bonus) sits at $129,000 with a $72,000 base salary, compared to a total compensation of $102,000 last year. Principals, meanwhile, are on average earning $376,000 with a base of $200,000. That represents a huge jump from 2003 when principals were taking in a total of $227,000. General Partners are still the best paid in the industry, and on average have seen their total compensation levels approach $1 million. GPs are raking in $917,000, according to the report, with a base salary of $449,000. On a percentage basis, the jump is not as high as either the senior associate or principal levels, but in dollar terms, the $224,000 raise is easily the largest among the different positions.
posted on Monday 6 Dec 2004 03:40 EST
From Buyouts - see full story (subscription required)
Buyouts reports, the high level of activity seen in all areas of private equity, has steadily increased bonus levels. Total compensation in the past year has soared higher across the board, with increases of roughly 25% against last year’s levels for analysts and associates and as high as 65% for professionals in the principal ranks.
In the past 18 months for example, The Carlyle Group and KKR have purportedly returned a total of around $15.6 billion to limited partners, while some firms such as ABRY Partners have seen enough success to hike up the carried interest on new funds to 30%.
According to the “2005 Investment Benchmarks Report: Private Equity Compensation,” a new study released by Venture Economics and Glocap Search LLC, total compensation levels are up significantly. At the analyst level, the average total compensation (comprised of base salary and bonus) sits at $129,000 with a $72,000 base salary, compared to a total compensation of $102,000 last year. Principals, meanwhile, are on average earning $376,000 with a base of $200,000. That represents a huge jump from 2003 when principals were taking in a total of $227,000. General Partners are still the best paid in the industry, and on average have seen their total compensation levels approach $1 million. GPs are raking in $917,000, according to the report, with a base salary of $449,000. On a percentage basis, the jump is not as high as either the senior associate or principal levels, but in dollar terms, the $224,000 raise is easily the largest among the different positions.
# posted by Tom @ 5:47 AM 
