According to Eastward Partners' latest Year In Review Market Report, professionals working in Private Equity saw significant increases in compensation over 2022.
The report, which outlines compensation and hiring trends amongst funds and portcos, revealed that 2022's war for talent remained intense amongst a talent shortage, in turn providing lucrative opportunities for professionals working in the space:
65% of private equity professionals received an increase in base compensation in 2022.
A notable trend of hiring junior staff persisted throughout 2022, who saw overall median base compensation rise by 26% in the last two years.
Diverse private equity professionals reported cash compensation increases ranging from 50% to 200%.
Brett Vecchio, Associate Partner and Head of Private Equity at Eastward Partners, gave an overview of the report's findings and his thoughts on how to gain an edge in the war for talent:
"As deal activity starts to pick up at the start of 2023, hiring demand will go hand in hand, fuelling intense competition for talent, which I anticipate will remain. We have seen professionals benefit greatly throughout 2022 from inflated salary offerings and equity grants to land their services, which is often a go-to strategy when acquiring talent. However, continuing in this vain can be challenging to sustain.
I envisage people data and analytics playing a pivotal role this year, and a greater understanding of talent flow will give investment houses and portcos the edge. Utilizing data to understand trends amongst the talent pool will mean accessing talent sooner, which will keep you one step ahead of the competition."
The report goes on to cover the firms with the highest growth in 2022, the firms with the highest attrition, geographic hot spots for talent, gender diversity across the industry, and an outlook for 2023.
The full report can be found on Eastward Partners' website.
Notes for Editors:
Eastward Partners Inc. is an Executive Search and Human Capital Consultancy. Eastward operate within Middle Market Private Equity functions, Brand and Digital Agencies, Financial Advisory Consultancies and the Human Resources market.
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The Private Equity, Year in Review Market Report can be found here.
Eastward Partners source data from millions of data points publicly available online, and through proprietary software with access to anonymized compensation figures for almost 40 million employed Americans.
Data is synthesized into groups by title and skills to draw insights and conclusions from specific talent pools to take away trends such as supply and demand, emerging skills, hub locations for that specific group of talent, gender diversity, over a 12-month period.
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