A detailed guide to rising private equity pay in London

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A detailed guide to rising private equity pay in London

Private equity firms and other alternative investment firms in the UK have increased pay  by around 77% in the past few years according to a new survey from pay benchmarking site, Emolument. 

Associates in alternative investment firms now earn a minimum base salary of £100k ($123k), and up to £36k in bonuses, according to a survey of 500 people from Emolument. Further up the hierarchy, Emolument says managing directors can earn salaries of £200k, plus bonuses of £167k.

Thomas Drewry, co-founder of Emolument said: "While pay is undeniably high across most roles at alternative investments firms, there are significant disparities from one company to another, mostly depending on investment strategies. These disparities also exist within firms, with senior employees working in investment roles reaping the vast majority of the benefits."

However, the real money in private equity is in the form of carried interest, which is paid around once every five to seven years, when companies that have been invested in go public. Emolument says carried interest for associates in alternative investment funds can be as high as £300k. For managing directors, it can be as high as £2m. However, only a minority of people receive carried interest: just 32% of people across the alternative investment industry get it according to Emolument.

Emolument defines alternative investment firms as private equity funds, direct lending funds, infrastructure funds, real estate funds and venture capital funds. It says pay is highest in private equity.

Photo by Luke Stackpoole on Unsplash

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