2014 North American Investment Executive Compensation Survey

The 2014 survey requested that participants provide data for 2014, 2013 and 2012. These years represent a period of recovery for the industry as private equity firms have exited their portfolio companies and fundraising has increased. However, this period has also seen an increasing intermediation of investment opportunities as well as rising multiples. The refrain that it is a “seller’s market” is frequently heard. As such, many private equity firms have found it challenging to find compelling businesses to invest in at a sensible price.

The employment market for investment professionals is largely driven by fundraising but given the challenges faced by many firms over the past few years (and conceivably for a number of years to come), hiring remains muted.

While hiring remains muted, we have seen the following trends:

• Demand for investment talent to move from GPs to well-funded LP platforms as these players increase their exposure to direct private equity;
• Demand for investment talent, at the VP level and above, to show a track record in, or ability to, source and convert investment opportunities;
• Increasing demand for investment professionals to have specific experience in the types of investments made at the hiring firm; be it exposure to specific industries, strategies or deal structures (or all three);
• Increasing interest in non-traditional private equity (structured equity, non-control, PIPEs, etc).

This survey examines the following topics:

• How has compensation developed over the past three years?
• How does compensation compare across levels?
• How does compensation compare across fund size?
• How does compensation compare across AUM?