The annual Private Equity and Venture Capital Compensation Report for 2024 shows that compensation in the private equity and venture capital industry has increased for the tenth consecutive year. Despite this positive trend, there are concerns for job security and a slowdown in hiring.
- Last year, compensation increased for all respondents across all job titles.
- Base pay increased, but bonus pay growth did not keep pace.
- Private equity firms paid higher total compensation than venture capital firms.
- Participation in carried interest pools is reserved for those most involved in investment decisions.
- Carried interest participation rates are influenced by work experience.
- Funds up by 25% or more declined by 9 percent.
- Fund performance was rated down by 10 percent of respondents.
- Bonuses were not guaranteed for 71 percent of respondents.
- Only 14 percent of respondents reported below average or poor work-life balance.
- 38 percent of respondents expressed concerns about job security.
- The top three concerns for job security were market conditions, fundraising, and firm structure.
- While 50 percent of respondents said their firms are hiring investment professionals, hiring is down across all positions.
- Headcount reductions are up across all categories, indicating a decrease in hiring.
