Private equity firms have job openings for continental Europeans

These are tough times for private equity funds. Investment in new projects has slumped and the value of most existing portfolios is down.

But job seekers with the right skills are still in demand, especially continental Europeans.

David Craig, joint managing director at Walker Hamill, the recruitment firm, said the sector was surprisingly healthy. "A number of major European players are recruiting. It remains a very good market, all things considered."

Craig's optimism is echoed in a flurry of job advertisements for private equity specialists. During the past two weeks, requests have appeared for everything from a Dutch speaker to manage a fund in Holland, an IT expert to manage a fund in central Europe, and an origination expert for a renewable energy fund with a focus on Frankfurt.

It is no coincidence that vacancies have a continental emphasis. Andrew Morland, a private equity specialist at recruiter EM Finance, said: "There are a lot of London-based private equity partnerships investing across Europe.

"They are looking for people with experience gained in Italy, Germany, France, or Spain. Nationals of those countries are preferred."

Morland said vacancies were often for mid-level positions. Funds were looking for staff with two to three years direct private equity experience.

At Walker Hamill, Craig said private equity recruiters were also receptive to very high calibre individuals with a background in investment banking or strategy consulting.

Eighteen months of transaction-based experience and an unblemished academic record are crucial, says Craig. Redundancy is not a problem: "In this market, there is no longer a stigma attached."

Recruiters said associate level recruits with 18 months experience can expect a basic salary of between 50,000 (€80,000) and 65,000. More seasoned individuals with between 3 and 5 years experience should expect a basic salary of between 70,000 and 90,000.

In both cases, basic pay is supplemented by a performance-related bonus, at least 50% extra in good year, as well as entry into a carried interest scheme.

It is carried interest that has traditionally made private equity specialists rich. Morland said interest can be anything between 1.5% to 2.5% of the money made when a fund is cashed in, or exits its portfolio investment. With some funds worth several billion pounds, this can be a lucrative source of income.

In current market conditions however, exits are hard to come by and carried interest is less frequently paid out.

Morland said private equity specialists in their 30s were moving jobs more frequently as a result. Rights to carried interest are foregone following a move to a new employer. Staff at director level and above however were staying put.

This may be just as well. Barry Gould, a private equity consultant at headhunter Whitehead Mann, said senior level vacancies were relatively scarce.

Top level hiring had been affected by the fall in fund value, he said. When senior vacancies did arise, they invariably went to sector specialists with commercial experience, not to bankers.