Reuters
Apollo Global Management co-founder Leon Black.
- Private equity is seeing the most active hiring market ever, as demand increases from new managers and existing firms, according to a new report.
- Vice president-level candidates are receiving one to four new opportunities weekly.
- Compensation across levels is increasing, with managing partners seeing the biggest jump in base salary to $786,000.
It's never been a better job market for private equity professionals, with the sector seeing the most active hiring market ever, according to a new report.
In a survey of 630 North American investment professionals released Tuesday, recruiting firm Heidrick & Struggles found that more than half of respondents saw an increase in base salary this year compared with 2017. More than three-quarters of that group saw their base salary increase up to 20%. Managing partners saw the biggest increase, with base compensation up 13.6%, to $768,000.
Bonuses are rising, too: 77% of those surveyed said their bonus increased from 2016 to 2017, with 90% reporting an increase of up to 50%.
As compensation ticks up, so are opportunities to move elsewhere. Vice presidents reported receiving one to four new opportunities weekly and said they're becoming more selective about taking a new job.
Increasing compensation and opportunities come as US private equity fundraising hits record highs. In 2017, the industry raised $243 billion, up 5% over the prior year, according to data provider Pitchbook. Dealflow is also at near-record levels, with $594 billion of transactions in 2017, down just slightly from 2016's record.
More institutional investors are adding private equity capabilities, too. Foreign pensions and sovereign wealth funds, including the Canada Pension Plan Investment Board and Singaporean sovereign wealth fund Temasek, are hiring large numbers of direct equity professionals.
See also:
- Hundreds of top Wall Street dealmakers have jumped ship this year amid the most frenzied competition for talent since the financial crisis
- Meet 2018's Rising Stars of Wall Street shaking up investing, trading, and dealmaking
- Rising stars from Goldman Sachs, JPMorgan, and Blackstone share their best career advice