Is Private Equity a real alternative for young bankers?
We have examined 2014, 2013 and 2012 salary and bonus data from 260 private equity professionals working in London.
- Following a marked dip in 2013, analysts pay is stabilising: in 2013, analyst total compensation increased by 20% thanks to a 2.5x bonus hike
- Associate pay remains stable despite a bonus decrease: between 2012 and 2014, associates total compensation only went down by 7 points
- Mid-ranking executives suffer the most: for VPs and Directors, despite stable salaries, the last 2 years have seen bonuses shrink by 50% on average
- And the happy fews are... MDs: base salaries have grown by 28%, bonus and total compensations by 50%!!
In tough deal-making times, MDs seem less open to sharing the profits from those few deals that do close; however as soon as activity picks up, they are keen to take on and reward more junior staff such as analysts and have actually been competing with banks for young professionals able to churn out valuable models and powerpoint presentations -it's a good time to be starting out in Private Equity
| Base Salary | Bonus | Total Compensation | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |
| MD | £230,000 | £183,000 | £180,000 | £285,000 | £229,000 | £190,000 | £506,000 | £421,000 | £340,000 |
| Director | £125,000 | £140,000 | £140,000 | £105,000 | £150,000 | £170,000 | £230,000 | £300,000 | £330,000 |
| VP | £100,000 | £110,000 | £100,000 | £45,000 | £71,000 | £115,000 | £152,000 | £184,000 | £223,000 |
| Associate | £83,000 | £75,000 | £80,000 | £45,000 | £50,000 | £60,000 | £130,000 | £130,000 | £140,000 |
| Analyst | £49,000 | £45,000 | £55,000 | £10,000 | £4,000 | £25,000 | £59,000 | £49,000 | £75,000 |
Emolument median figures
Emolument median figures
RELATED: Which City Pays its Bankers the Best?
Emolument provides bonus and salary statistics based on data submitted directly by professionals like you. It is free, anonymous, and already a trusted tool for thousands of professionals worldwide. Are you paid enough? Click here to find out now.
Are you an employer?
Hire and retain the best talent with accurate and reliable data
Benchmark Your Teams
Know what you're worth
Compare your compensation with peers in your industry