“In 2012, financial professionals were much better off, on average, in terms of compensation when working for a private equity firm than for a venture capital firm… At the principal level, an individual working in private equity could expect to earn approximately USD 450,000 a year, while his peer in venture capital would expect, on average, approximately USD 210,000 per year in total compensation.”
Who said it: authors of the Private Equity Compensation Report
In Context: The quote is from a report based on the sixth annual survey about PE compensation (base salary, carry, vacation, and bonus data included) conducted by the team at PrivateEquityCompensation.com. The outlook for careers in PE is good this year, according to the research company’s corporate blog. Its 2013 report found that the industry is “ramping up in the wake of stronger economic fundaments” around the world, firms are increasingly looking at adding new talent to their ranks, essentially showing increased hiring intentions in all disciplines.
Whether one is looking to enter the industry for the first time, or perhaps move to a new firm for different opportunities, 2013 is shaping up to be a good year to execute on those plans. It also said that it may be surprising, but the majority of those in private equity do not come from an investment banking background. While on its own it is the biggest single source of current private equity employees, investment banking alumni represent only about a third of total private equity employees.
Where we found it: PrivateEquityCompensation.com