Keeping up with entry-level compensation

31 August 2022 | Gail McManus, Managing Director

 “Private equity firms have expanded the number and type of funds they run and that means they are even more active in recruitment this year,” Gail told David Kothie at eFinancial Careers in a recent interview.

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 September kicks off the busiest period for hiring by PE firms and this year promises to be as competitive as ever. Private equity firms are increasingly following in the footsteps of larger firms like Blackstone, Carlyle and KKR by snapping up talent now to start in September 2023.

Investment banking is a large candidate pool for private equity entry-level hiring precisely because of the quality of banks' training programs. PE firms target analysts as they join the banks and by the time they join they have a year’s training at a top bank under their belts,

Pay has increased across the board in private equity, driven by salary inflation at banks. “Entry level comp at £100k ($121k) is now the norm, as bank comp increases. As a result, PE firms are having to hike the salaries of existing staff by £10 to £15k to keep the incumbents ahead of the new starters,”

PE firms are competing for talent from banks with credit funds and technology firms, but by and large the biggest PE firms still have the pick of the crop when it comes to hiring. 

To read the full article from eFinancial Careers article including compensation data from Private Equity firms Blackstone, Carlyle and KKR in the US, click the link below.

Read the full article

About the author

Gail is the Managing Director and founder of PER, setting up the business in the late 1990s after a career in private equity at 3i.

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