Over 650 private equity professionals have responded to our Taking the Temperature survey to track how coronavirus is affecting hiring, compensation and confidence in the market. Ahead of our first full report, we’ve put together some headline figures from the data.
One highlight from the report is that hiring is ongoing or is expected to restart once the crisis is over, with only 12% of respondents saying that they have cancelled processes and 29% reporting that hiring is continuing as planned. We’ve seen this reflected in the mandates we’re running at PER.
Team sizes aren’t expected to change significantly across private equity functions and levels except in investment teams, where a third of respondents said they expected to increase team sizes over the next six months. Some hiring is also predicted for portfolio and asset management.
In terms of renumeration, only variable and carry seem to be affected. More than 80% said they anticipate no change to their base salary, while two thirds expect bonuses to decrease and almost 40% expect carried interest / LTIP to be reduced.
Looking to fund performance, our initial findings reveal private equity professionals are expecting fundraising, new investment, portfolio returns and carried interest / LTIP values to take a short-term hit as a result of the coronavirus situation, while longer-term projections show an improved outlook. This fits with what we’re hearing from clients; portfolio performance is likely to be dented by the current situation and affect carry valuations, but many expect to see these fluctuations stabilise with time.
Our full report, including a detailed breakdown of the data and additional insights from contributors will be available shortly. We’ll continue to speak to the market and we’re here to talk if you have any questions.
If you haven’t yet taken part in the survey, please click here. It should take less than five minutes to complete and all responses are anonymous.