Welcome to the 2024 Europe Private Capital Compensation Survey. This report provides a comprehensive picture of both compensation practices and backgrounds of investment and operating professionals at private capital firms across Europe.  

This year’s survey includes responses from 364 professionals. We would like to thank each person who has completed the survey over the years—we appreciate your time and effort in contributing to the project. If you wish to discuss the survey in greater detail, please do not hesitate to contact us. 

State of the European private capital market 2025

The choppy waters of 2024 are now in the rearview mirror, but as we look ahead at 2025 there remains uncertainty as to how the year will play out. Consensus persists that the macro environment needs to improve, and, ideally, interest rates fall, to put liquidity back in the system. 

Our ears continue to ring with concern about the distributions to paid-in capital ratio (DPI), which calculates the amount of capital returned versus capital invested by limited partners. LPs, historically institutional investors, but increasingly also wealth clients (UHNWs, platforms, and family offices), insurance firms, and, in some cases, retail investors, are seeking greater liquidity from their assets, meaning that private capital firms’ track records have come under greater scrutiny. Firms’ inability in recent years to exit investments and return capital to their investor base, creating a low DPI metric, is also creating challenges in raising new capital, perpetuating a vicious cycle. While 2024 saw some improvement, significant fundraising hurdles remain.

Deal flow remained relatively low compared to 2021 levels, but 2024 showed a noticeable improvement from 2023, a projected 27.5% increase in deal value.¹ Nonetheless, the longer term reduced deal volume has led to decreased demand for “deal captain” professionals. These individuals, typically at pre-partner level, are regarded as the engine room of private capital firms. Two years ago, demand for these people significantly outweighed the supply of talent; however, this dynamic has reversed.

Despite this shift, senior-level hiring (at the partner and managing partner levels) remains robust. Firms that have successfully raised capital are leveraging the slower deal market to establish new sector or geographical focuses and are opportunistically attracting talent from firms struggling to raise or deploy capital. Additionally, many firms are seeking to enhance their existing track records with senior additions to their teams in 2024.

While associate-level hiring has remained steady, though at relatively lower levels, the market has experienced a “squeezed middle” or hourglass effect, in demand for investment professionals across the private capital spectrum.

A notable area of growth for private capital firms has been the increased specialization of capital formation teams. The increasing range of LPs has required significant investment in talent to establish, service, and sell semi-liquid-style products and structures across the private capital spectrum.

Finally, we continue to see consolidation in the European private capital market, in line with global trends. Firms are diversifying their product offerings to navigate a period of macro-instability.

For full organization and compensation data, download the full report.

Acknowledgments

The authors wish to thank Asma Mohamed Ali for her contributions to this report.

About the authors

Tom Thackeray (tthackeray@heidrick.com) is a partner in Heidrick & Struggles’ London office and a member of the global Private Equity Practice.

Henry Price-Haworth (hpricehaworth@heidrick.com) is an engagement manager in the London office.

Reference

¹ “Q3 2024 European PE Breakdown," Pitchbook, October 14, 2024, pitchbook.com