2019

NORTH AMERICAN
PRIVATE EQUITY
COMPENSATION STUDY
 2019 North American Private Equity Compensation Study
GoBuyside is a 21st century executive search firm that specializes in working with private equity firms, hedge funds,
other investment managers, advisory platforms and Fortune 500 companies across a broad spectrum of geographies and
mandates. Leveraging proprietary technology and a diligent approach, our team has an unparalleled competitive
advantage in both sourcing and screening top-tier candidates.

Our team’s professional experiences and educational credentials further differentiate our execution capabilities and
enable us to form deeper relationships within the markets we serve. Hundreds of clients entrust GoBuyside with their
human capital needs and our talent network expands to over 10,000 firms worldwide.

Compensation Study
This study is intended to provide clients and members of our community with private equity compensation information.
Please note that differences in fund structures (management fees, size of team, use of carry compensation or phantom
equity, etc.) make candidate’s annual cash compensation particularly volatile at certain fund sizes. Members of our
community and clients are always able to search the thousands of compensation reviews on our platform to access
information on specific private equity firms. The most accurate and efficient way to benchmark your compensation would
still be to connect with a member of our team. We speak with thousands of professionals every year. Leveraging our data
and insight, we regularly provide these professionals with accurate information regarding the compensation ranges of
funds that are similar in size, investment strategy and location to their own.

Our compensation survey was completed by 1,565 private equity professionals. Below is a breakdown of
private equity survey respondents by the latest fund size raised by their private equity firm.

$0 to $250 Million
14%
Greater than $5 Billion
18%

$250 to $500 Million

14%
$2 Billion to $5 Billion
15%

$500 to $750 Million

10%
$1.5 Billion to $2 Billion
7%

$750 Million to $1 Billion

$1 Billion to $1.5 Billion 11%
11%
Associate Compensation By Fund Size And Years Of Experience
GoBuyside is the market leader in the placement of associates into alternative investment firms across the globe. In 2018
alone, GoBuyside placed candidates in over 55 cities in the United States and over 12 cities abroad. Our clients range from
goliath private equity platforms looking to acquire candidates on-cycle to mid-market private equity, credit, fund of
funds, secondaries and co-investment platforms hiring throughout the year for nearer term needs.

The predominant talent pool for these associate positions consists of investment banking, consulting and private investing
analysts who joined their current firms out of undergraduate programs. GoBuyside facilitates the education and
transition of these professionals, often forming relationships with these candidates while they are still in college and/or
interning during their sophomore or junior years. Our market vantage point provides the opportunity to solicit
proprietary data at a granular level. This study solicited compensation information from the associate talent pool by:

 Years of Experience – The number of years of investing experience the professional had completed.
 Location – The work city of the professional.
 Investment Strategy – The investment strategy (buyout, growth, special situations, etc.) of the professional’s fund.
 Education / Experience – The academic and work history of the professional.
 Fund Size – The latest fund size raised by the professional’s investment firm.

There is too much information to succinctly show every iteration in this report, so we encourage you to reach out to us to
have a more detailed compensation discussion pertaining to your particular situation (fund size, location, strategy, etc.).
We regularly provide this advisory support to clients and professionals confidentially. The below tables provide private
equity associate compensation by fund size and years of experience.

Location Adjustment
Professionals outside major cities report lower compensation, which reduces the overall median in the tables below.
Reach out to our team to discuss the appropriate geographical adjustments based upon your fund size and location.

Associate Compensation Analysis

The medians in the tables below provide context, but some other considerations to keep in mind include:

 Mega-Fund Private Equity Base / Bonus Splits – Most mega-funds (often referred to as >$5B fund sizes) have
salaries that are less than 50% of the all-in cash compensation amount (for example a $125K base and a $195K bonus
leading to $320K all-in cash compensation). However, there are funds on the lower end of the $5B cutoff who offer
higher base salaries for whom this facet is not true. For example, associates at Berkshire Partners in Boston reported
$160K base salaries with 75% guaranteed bonus targets (salary is therefore 57% of all-in guaranteed compensation).
 Middle-Market Private Equity Base / Bonus Splits – Most established middle-market private equity platforms (>$1B
AUM) offer a close to 50% split on salary and annual bonus compensation. In fact, the mode (most common package)
in our established middle-market private equity associate data set was a $125K base with a $125K bonus target.
 Career Progression – There are competing career progression narratives that evolve during the associate recruitment
process that are tangentially linked with compensation. Most commonly, some funds leverage their placement rates
into Stanford Graduate School of Business and Harvard Business School while others market the lack of an MBA
required to advance in the organization. Career progression, in context of preferences, is often of greater importance
to candidates than compensation and yields a high degree of influence in candidates’ decision-making processes.
 Hiring Timeline – Hiring timelines tend to have a positive correlation with compensation offered at the associate
level even when adjusted for fund size. Meaning, similarly sized funds who recruit talent during the heat of the on-
cycle rush offer higher cash compensation than their counterparts who recruit from the identical talent pool off-cycle.
 Fund of Funds, Secondaries, Co-Investments – Fund of funds, secondaries and co-investment platforms operating at
the higher end of the market offer associate salaries competitive with middle-market private equity platforms. Bonus
targets tend to be lower but other incentive plans are often offered alongside better work-life balance and a career
trajectory that does not require an MBA for advancement.
Private Equity Associate Hiring Timeline
The on-cycle private equity recruitment process has trended earlier in recent years, creating a frenzy for associate talent.
The months on the data plot below represent the month the on-cycle process kicked off while the X axis shows the cycle
timing; the private equity associate recruitment process kicked off in October 2018 for positions starting in summer 2020.
Jul - 09

Jun - 06

May - 10
May - 07 Mar - 13
Mar - 12
Apr - 08
Feb - 14
Mar - 11 Feb - 15
Jan - 16
Jan - 17
Dec - 17
Oct - 18

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

We have done a brief survey over the last three years and the trend is clear in that candidates are feeling less prepared
during the on-cycle process and their participation rates are falling. One important thing to note is that the on-cycle
process typically disenfranchises certain groups of candidates and that there is a large contingent of female and other
diversity candidates every year who opt to wait for off-cycle recruiting.

Cycle Start Time Candidate Preparation (%)1 Participation Rate1

Summer 2018 January 2017 42% 72%
Summer 2019 December 2017 36% 65%
Summer 2020 October 2018 25% 59%

Associate Program Length & Bonus Timing

The private equity associate experience has become almost a mandatory stepping stone into a long-term career in
alternative investing. We solicited data on associate tenure and bonus timing:

 Tenure Expectations – Survey data showed that 81% of associates reported their firm to have either a formal or
informal two year associate expectation, while 74% reported that staying for a third year as an associate was an option
at their firm for high performers. The majority of candidates at platforms managing greater than $5B in AUM did not
feel their firms truly had an internal path to Partner.
 Payment Timing – Survey data showed that 65% of investment associates are paid bonuses on a summer cycle
defined as between the months of May and August. The remaining associates reported being annualized (receiving
their bonuses in December through February) or having joined their firms at a month outside of the summer and
having annual bonus cycles 12 months from that start date.
 Lower Mid-Market Upward Mobility – Over 75% of candidates who reported seeing a viable path of upward
mobility at their organizations, worked at funds whose latest fund sizes were less than $1B. Given the recent
fundraising environment, a large percentage of these candidates relative to previous market cycles had joined spin-
offs, first-time or second-time funds.

1
Percentage of candidates surveyed on-cycle who reported being prepared during on-cycle. Random data set of bulge-bracket and elite boutique first
year investment bankers surveyed during on-cycle recruitment process.
Private Equity Analyst Compensation Table
Private equity firms have begun hiring analysts directly out of undergraduate programs and many leverage GoBuyside’s
technology and services to streamline the process. The most common concern we hear from investment teams when
evaluating this hiring option revolves around the time and cost of training. Analyst hiring is an emerging trend that we
are monitoring closely. Below is a median compensation table for analyst professionals working in the United States.

Private Equity Analyst (Hired Out Of College)

Fund Size1 All-In (USD)2 Base Salary2 Cash Bonus2 Co-Invest3 Received Carry3
$0M - $1B $135,000 $85,000 $50,000 18% -
$1B - $5B $150,000 $90,000 $60,000 22% -
> than $5B $190,000 $100,000 $90,000 25% -

For comparative purposes, the typical bulge bracket or elite boutique investment banking analyst who graduated college
in 2018 received an $85K to $95K starting salary with a sign-on bonus and $50K to $80K annual bonus. Outside of
marquee platforms like Blackstone, KKR, etc., candidates reported that the decision to join a private equity firm over an
investment bank was a difficult one. Specifically, many felt that an investment bank would invest more resources in their
analytical development and provide more opportunities to quickly develop a foundational professional network.

Private Equity Associate Compensation Tables

The below tables provide compensation by Fund Size and Years of Experience. Professionals have commonly
completed one to three years of investment banking or consulting prior to joining private equity firms.

First Year Private Equity Associate (Medians Across All Geographies)

Fund Size1 All-In (USD)2 Base Salary2 Cash Bonus2 Co-Invest3 Received Carry3
$0M - $250M $150,000 $95,000 $55,000 31% 13%
$250M - $500M $170,000 $100,000 $70,000 38% 15%
$500M - $750M $190,000 $100,000 $90,000 39% 14%
$750M - $1B $205,000 $105,000 $100,000 20% 10%
$1B - $1.5B $220,000 $110,000 $110,000 42% 17%
$1.5B - $2B $240,000 $120,000 $120,000 40% -
$2B - $5B $265,000 $130,000 $135,000 33% -
> than $5B $300,000 $140,000 $160,000 46% -

Second Year Private Equity Associate (Medians Across All Geographies)

Fund Size1 All-In (USD)2 Base Salary2 Cash Bonus2 Co-Invest3 Received Carry3
$0M - $250M $170,000 $100,000 $70,000 33% 13%
$250M - $500M $180,000 $100,000 $80,000 39% 16%
$500M - $750M $210,000 $105,000 $105,000 39% 16%
$750M - $1B $220,000 $110,000 $110,000 22% 14%
$1B - $1.5B $230,000 $115,000 $115,000 40% 18%
$1.5B - $2B $250,000 $125,000 $125,000 42% -
$2B - $5B $275,000 $130,000 $145,000 36% -
> than $5B $315,000 $140,000 $175,000 45% -

1 M denotes million and B denotes billion.

2 Median reported compensation.
3 The percent of the respondents who reported receiving co-invest option or carry as a part of their compensation. Not shown if less than 10%.
Fund of Funds, Secondaries & Co-Investment Associate Compensation Tables
Our clients include the most well-known fund of funds, secondaries and co-investment platforms in the world. While
some of these funds recruit on-cycle, the vast majority recruit their investment associates off-cycle. It should be noted that
fund of funds, secondaries and co-investment associates traditionally experience much better work-life balance than their
private equity associate counterparts, which should be accounted for when evaluating compensation data.

First Year FOFs, Secondaries & Co-Investment Associate (Medians Across All Geographies)
AUM1 All-In (USD)2 Base Salary2 Cash Bonus2 Co-Invest3 Received Carry3
$0M - $1B $135,000 $95,000 $40,000 - -
$1B - $10B $160,000 $110,000 $50,000 - -
> than $10B $180,000 $120,000 $60,000 - -

Second Year FOFs, Secondaries & Co-Investment Associate (Medians Across All Geographies)
AUM1 All-In (USD)2 Base Salary2 Cash Bonus2 Co-Invest3 Received Carry3
$0M - $1B $150,000 $100,000 $50,000 - -
$1B - $10B $175,000 $115,000 $60,000 - -
> than $10B $190,000 $125,000 $65,000 - -

Associate Gender Diversity Analysis

Diversity has been a core focus of our clients across the globe, and we have been successful placing female candidates
throughout the United States in private equity associate roles. The below tables provide academic data on candidates who
pursued private equity associate investment recruiting for summer 2018 and summer 2019 start dates.

2016 Undergraduates (Started Summer 2018 Private Equity Associate Roles)

Gender Median GPA Median SAT - M Median SAT - V Median ACT School4
Male 3.7 760 700 32 Univ. of Virginia
Female 3.7 770 730 33 Wharton

2017 Undergraduates (Starting Summer 2019 Private Equity Associate Roles)

Gender Median GPA Median SAT - M Median SAT - V Median ACT School4
Male 3.7 760 720 33 New York Univ.
Female 3.8 780 730 34 Harvard Univ.

We provide actionable data regularly to our client base but some key takeaways for broad observation include:

 Female candidates recruiting for entry-level private equity associate investment positions in recent cycles tend to
have comparable to slightly stronger academic credentials than their male counterparts.
 Vocational undergraduate finance programs like Wharton and NYU Stern tend to correlate to placement success.

1 Assets under management. M denotes million and B denotes billion.

2 Median reported compensation.
3 The percent of the respondents who reported receiving co-invest option or carry as a part of their compensation. Not shown if less than 10%.
4 This column shows the mode in the data set (i.e. the most common school the group of candidates graduated from). In 2016, the top three represented

universities for male candidates were 1) University of Virginia, 2) New York University, 3) Indiana University and for female candidates were 1)
Wharton, 2) NYU, 3) University of Virginia. In 2017, the top three represented universities for male candidates were 1) New York University, 2)
Wharton, 3) University of Michigan and for female candidates were 1) Harvard University, 2) New York University, 3) University of Virginia.
Senior Associate & Vice President Compensation Tables
Please see below for median compensation tables for private equity professionals working in the United States. The key
takeaways on Senior Associate and Vice President Year 1 compensation have remained consistent since our last report:

 Senior Associates with MBAs received greater compensation and were also much more likely to receive carry.
 VP1s were more likely to receive carry than Senior Associates with MBAs but received similar cash compensation.
 Smaller fund sizes typically offered larger amounts of carry as a percentage of the total amount available to VP1s;
carry amounts ranged from 10bps to 500bps with an inverse correlation between fund size and amount. 1
 Cash compensation at the Senior Associate and Vice President Year 1 level has not seen the same rate of growth in the
last two years as it did in the couple of years prior.

Private Equity Senior Associate without MBA (Medians Across All Geographies)
Fund Size2 All-In (USD)3 Base Salary3 Cash Bonus3 Co-Invest4 Received Carry4
$0M - $250M $200,000 $100,000 $100,000 40% 52%
$250M - $500M $230,000 $115,000 $115,000 41% 47%
$500M - $750M $240,000 $125,000 $115,000 42% 28%
$750M - $1B $250,000 $125,000 $125,000 26% 25%
$1B - $1.5B $265,000 $125,000 $140,000 45% 17%
$1.5B - $2B $305,000 $140,000 $165,000 43% -
$2B - $5B $320,000 $140,000 $180,000 40% -
> than $5B $335,000 $150,000 $185,000 45% -

Private Equity Senior Associate with MBA (Medians Across All Geographies)
Fund Size2 All-In (USD)3 Base Salary3 Cash Bonus3 Co-Invest4 Received Carry4
$0M - $250M $260,000 $130,000 $130,000 45% 75%
$250M - $500M $280,000 $140,000 $140,000 62% 85%
$500M - $750M $300,000 $150,000 $150,000 50% 83%
$750M - $1B $315,000 $150,000 $165,000 44% 90%
$1B - $1.5B $350,000 $150,000 $200,000 52% 88%
$1.5B - $2B $395,000 $150,000 $245,000 46% 85%
$2B - $5B $430,000 $200,000 $230,000 51% 82%
> than $5B $480,000 $200,000 $280,000 60% 86%

First Year Private Equity Vice President (Medians Across All Geographies)
Fund Size2 All-In (USD)3 Base Salary3 Cash Bonus3 Co-Invest4 Received Carry4
$0M - $250M $270,000 $150,000 $120,000 47% 92%
$250M - $500M $285,000 $150,000 $135,000 70% 91%
$500M - $750M $322,500 $150,000 $172,500 58% 87%
$750M - $1B $340,000 $160,000 $180,000 48% 92%
$1B - $1.5B $360,000 $160,000 $200,000 57% 91%
$1.5B - $2B $405,000 $180,000 $225,000 52% 88%
$2B - $5B $445,000 $200,000 $245,000 59% 85%
> than $5B $495,000 $215,000 $280,000 68% 89%

1 Fundless sponsors and first time funds provided VP1 carry amounts in the 200bps to 500bps range while >$5B fund sizes typically offered carry
amounts in the 25bps to 50bps range. A multitude of factors including but not limited to vesting schedules, fund performance, platform track record and
carry terms impact the ability to benchmark carry amounts across fund sizes.
2 M denotes million and B denotes billion.
3 Median reported compensation.
4 The percent of the respondents who reported receiving co-invest option or carry as a part of their compensation. Not shown if less than 10%.
List of Firms Included In Study
Our compensation survey solicited data from 1,565 private equity professionals and below is a sample of the private
equity firms included in the study. Note that the below sample is not representative of the entire data set as over
800 private equity firms were included in the study.

Advent International Crestview Partners Kohlberg Kravis Roberts Rhône Group

ABRY Partners
AEA Investors
American Capital
American Securities
Angelo, Gordon & Co.
Apax Partners
Apollo Global Management
Ares Management
Arlington Capital Partners
Audax Group
Avista Capital Partners
Bain Capital
BDT Capital
Berkshire Partners
Blackstone Private Equity
Carlyle Group
Catterton Partners
Centerbridge Partners
Cerberus Capital Mgmt.
Charlesbank
Clayton, Dubilier & Rice
Comvest Partners
Corsair Capital
Court Square
CVC Capital Partners
FFL Partners
First Reserve
Fortress Investment Group
Francisco Partners
Freeman Spogli & Co.
General Atlantic
Genstar Capital
GI Partners
Golden Gate Capital
Gores Group
GTCR
H.I.G. Capital
Harvest Partners
Hellman & Friedman
HGGC
Irving Place Capital
J.H. Whitney & Company
JC Flowers
JLL Partners
JMI Equity
Jordan Company
Kelso & Company
Kohlberg & Company
KRG Capital
Lee Equity Partners
Leonard Green & Partners
Lightyear Capital
Lindsay Goldberg
Littlejohn & Co.
LLR Partners
Lone Star Funds
Madison Dearborn Partners
Metalmark Capital
MidOcean Partners
Morgan Stanley PE
New Mountain Capital
Oak Hill Capital Partners
Oaktree Capital Mgmt
Odyssey Partners
Olympus Partners
Onex Partners
Partners Group
Pegasus Capital Advisors
Permira
Pinebridge Investments
Platinum Equity
Providence Equity Partners
Riverside Company
Riverside Partners
Riverstone Holdings
Sageview Capital
Sentinel Capital Partners
Silver Lake Partners
Stone Point Capital
Summit Partners
Sun Capital Partners
TA Associates
THL Partners
Thoma Bravo
Tinicum Capital
Towerbrook Capital
TPG Capital
Trilantic Capital Partners
TSG Consumer Partners
Vector Capital
Veritas Capital Mgmt
Vestar Capital Partners
Vista Equity Partners
Warburg Pincus
Welsh Carson
WL Ross & Co.
GoBuyside is a 21st century recruitment platform that specializes
in working with private equity firms, hedge funds, other investment
managers, advisory platforms and Fortune 500 companies across a
broad spectrum of geographies and mandates.

Leveraging proprietary technology and a diligent approach, our team

has an unparalleled competitive advantage in both sourcing and
screening top-tier candidates. Our team’s professional experiences and
educational credentials further differentiate our execution capabilities
and enable us to form deeper relationships within the markets we serve.

Hundreds of clients entrust GoBuyside with their human capital needs

and our talent network expands to over 10,000 firms and over 500
cities worldwide.

www.gobuyside.com
GoBuyside Inc. © 2019