London PE Salary Increases 2022
Hi people,
About to re-negotiate my comp (Analyst at a mid-market PE shop), so curious to hear if and by how much salaries for PE juniors have increased.
For reference: currently on £60k base + £30k bonus and think that is severely under market, based on what I heard from my friends.
Thanks!
What's the most recent fund size? It is not necessarily (significantly) below market, although I would maybe try to push bonus closer to 60-70% of base. Please don't forget that last year's comp was likely a one-off. GBP90-100k all-in is still good and would have been closer to top quartile until pre-2021 raises. Seeing how shitty dealflow is this year, I would be surprised if BBs would even pay remotely close last year's range.
Most recent European fund is £1bn (c. £9bn AUM).
Ok, thanks - that's reassuring to hear. Was hearing stories of friends getting close to £160-180k all-in as Analysts, so felt very unhappy suddenly :)
Yeah these numbers are a pipe dream. Only very few large cap funds (those that pay based on US comp such as BX, KKR, Silver Lake, BainCap) pay closer to that range for Analysts, but that is not market at all.
That’s closer to Associate comp to your comp set
London / Europe still seem very tight on uplifts
Europoors being poor
Associate MM, 1.5bn fund: 120k base + 120k bonus
What’s your WLB like?
bump
Catching up with those at other funds over the coming weeks, will provide a 'state of the nation'.
From chats with recruiters, uplifts seem VERY tight still.
May need more robust action.
Bump
Not hearing of much uplifts. Should go on strike like Royal Mail and TFL
Hahaha nice one
It’s just frustrating. Nobody is working much less, management fees continue to be stable, it would make very little difference on GP’s bottom line to increase marginally but would make a material impact in the well-being and satisfaction of juniors.
Yeah agreed, I suppose firms have no incentive to do so when other "normal" entry level / junior roles in the UK are paying like 30k all in. Seems like you're at an MM fund, ever considered moving to an MF?
Yes, it's people being 'good' and comparatively 'cheap' from Big4 and consulting for MM and even UMM PE.
I am at MM - but I enjoy the coverage, I have good progression opportunities and a very solid carry allocation (which I am confident will bump up over time, along with fund growth). Another ~15% on cash comp would be great and make things like a very solid 9/10 in terms of satisfaction.
Ah interesting how you get carry as an associate. Roughly speaking, does your annualised carry effectively bridge the gap between your cash comp and that of an MF PE associate?
So, assume global large cap funds are at ~£200 - 220k all in at Associate level without carry in London. UMM probably around £180k all in.
My cash comp is ~60% of that. With the carry (assuming 2.0x MoM which is the standard carry 'metric') it does bridge the gap - but obviously, need to discount back to PV, and also factor in the (for now) favourable tax treatment vs. horrid tax treatment in the UK for income / salary at the £125k+ tax band (including taper between £100 - 125k).
Although, there will obviously be a divergence if / when I get to VP level (vs. UMM and large cap). But then, at that point, I don't think the incremental stress to money trade-off is necessarily worth it.
Fair enough, all good points. I'd probably do the same esp. given the tax advantages you get from carry vs. cash comp
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