Welcome to our fourth annual North American Alternative Asset Management Marketing and Investor Relations Professional Compensation Survey. 

Together with our surveys of private equity investment and operating professionals, this report provides a comprehensive picture of the compensation that North American executives in the hedge fund, real estate, and private equity industries currently receive. 

For this report, Heidrick & Struggles compiled compensation data from a survey of 271 alternative asset management marketing and investor relations professionals in North America who are employed in private equity, hedge funds, or real estate. 

We hope you enjoy reading the report, which remains the only one of its kind. As always, suggestions are welcome, so please feel free to contact us—or your Heidrick & Struggles representative—with questions and comments.

Alternative asset management market context

Overview 

This year’s survey of compensation of marketing and investor relations professionals in the hedge fund, real estate investment, and private equity industries is set in the context of a fundraising market that, though still robust, has slowed somewhat in the past year and is closer to the more uncertain conditions of 2021. 

Due to more subdued fundraising, firms are now taking the time to assess products, analyze P&Ls, and tailor their strategy toward the most profitable revenue streams. We have seen that it has also become the norm, rather than the exception, for firms to hire people with product depth and knowledge. A continuing trend is the hiring of candidates with sales operations experience—a so-called COO of sales—to assist with strategy, positioning, competitive analysis, and more. These people can then free the head of sales to spend more time with clients. The shift reflects the importance of capital raisers and investor relations leaders who can manage internal stakeholders as well as communicate with investors in detailed product conversations. Going forward, we expect more growth in investor relations teams as firms allocate more resources to these areas.  

Credit remains the busiest subsector, with private credit firms still hiring for their fundraising teams, although at a slower pace than 2022. CLO issuance is down relative to prior years, slowing hiring and compensation. 

Previously, much hiring was focused on the mid- to mid-senior level. Now we are seeing more senior hires, for executives focused on relationships. 

Hiring for private credit and credit more broadly has led to mobility between alternatives managers and hedge funds. Fundraisers with credit experience have been in demand and have been found not only in alternatives managers but also in more traditional hedge funds. That said, the number of fundraisers leaving hedge funds for roles in the digital assets space has declined dramatically, largely due to the onset of the crypto winter in early 2022. 

On the real estate side, we are seeing more regionally dedicated sales roles, with a focus on western Canada and the southeastern United States. Hiring is also fairly robust in wealth management and retail. As raising institutional capital becomes more challenging, other channels for growth will become important for all product types.

In that context, mobility levels are, on the whole, consistent with previous years. However, one other factor influencing compensation is recent proposed regulations regarding pay equity,¹ which have led some firms to begin altering compensation packages to be based more on the role and its responsibilities rather than historic compensation. 

Compensation key findings

• For people in private equity/credit, 2022 average total cash compensation was $1,028,000, up from $976,000 in 2021. By product type, people in direct lending saw the highest average total compensation. 
• For people at hedge funds, 2022 average total cash compensation was $923,000, down from $1,024,000 in 2021. By product type, people in distressed or special situations saw the highest average total compensation. 
• For people in real estate, 2022 average total cash compensation was $1,045,000, more or less on par with last year’s reported figure, $1,048,000. By product type, people in separately managed accounts saw the highest average total compensation. 
• Looking ahead, 54% of respondents expect compensation to increase, down from 60% who said the same last year. Nearly one-third expect compensation to remain flat. These expectations are somewhat tempered compared to last year.

To read the full report, download the PDF.

About the authors

Graham Beatty (gbeatty@heidrick.com) is a partner in Heidrick & Struggles’ New York office and is the Americas sector leader for real estate.

Paul Charles (pcharles@heidrick.com) is a partner in the San Francisco office and a member of the global Financial Services and Technology practices. 

John Hindley (jhindley@heidrick.com) is a partner in the New York office and a member of the Financial Services Practice.

Reference

¹ “OPM releases proposed regulations to prohibit use of previous salary history,” press release, US Office of Personnel Management (OPM), May 10, 2023.