2016欧洲和非洲私人资本补偿调研报告（英文版）_14页_848kb

2016 Europe & Africa Private Capital Compensation Survey Summary

Core Content

The 2016 Europe & Africa Private Capital Compensation Survey provides an in-depth analysis of compensation trends for professionals in the private equity (PE) industry across Europe and Africa. It highlights changes in base salary, bonus, and carry compensation from 2014 to 2016, with a focus on investment professionals, fund-raising and investor relations professionals, infrastructure professionals, and operating partners. The report also examines the impact of market conditions, such as low interest rates, Brexit uncertainty, and the rise of special situations strategies, on compensation levels.

Key Compensation Trends

Overall Compensation Growth

• All Professionals: Self-reported compensation has grown by close to or at double-digit percentages in both 2015 and 2016.
• Investment Professionals:
  • Managing Directors: Base salary increased by 11.6% in 2015 and 8.9% in 2016.
  • Principals: Base salary increased by 12.3% in 2015 and 11.1% in 2016.
  • Associates: Base salary increased by 16.2% in 2015 and 13.5% in 2016.

Carry Compensation

• Carry is based on achieving a net 2x return (above hurdle and after fees) in a vehicle charging a 20% performance fee.
• Distressed Funds: For the first time in the survey's history, managing directors and principals in distressed funds had the highest base salary compensation.
• Buyout Funds: Still the highest compensators in terms of base salary and bonus.
• Infrastructure Professionals: Receive carry equivalent to a level below that for investment professionals, with operating partners at the associate level not receiving carry.

Experience and Compensation

• Entry-Level (0-2 years): Minimal increase in compensation (0.9%).
• 2-4 years: 11.2% increase in total cash compensation.
• 5-6 years: 8.8% increase in total cash compensation.
• 7-8 years: 4.7% increase in total cash compensation.
• 9-10 years: 6.1% increase in total cash compensation.
• 11-12 years: 19.0% increase in total cash compensation.
• 13-14 years: 11.2% increase in total cash compensation.
• 15-16 years: -1.2% change in total cash compensation.
• 17+ years: 9.3% increase in total cash compensation.

Market and Hiring Trends

Market Conditions

• Capital Raising: More capital was raised in 2016 in Europe than since 2008, driven by low interest rates and high dry powder.
• Brexit Impact: Uncertainty around Brexit has led to a 'pricing gap' between sellers and buyers, though some pricing adjustments have occurred post-vote.
• Special Situations Strategy: Due to low returns in credit and high equity pricing, special situations have become a popular strategy.

Hiring Trends

• Low Hiring Demand: Despite increased assets under management (AuM), the market has seen generally low hiring demand.
• Replacement Hiring: Continues, especially at the 'deal captain' level.
• Chinese-Backed Funds: Influx of specialist, Chinese-backed investment vehicles into Europe, seeking local companies and growth in Asia.
• Sovereign and Pension Investors: Continue to seek talent from traditional GPs for direct strategies.
• Operating Professionals: Little new demand for in-house operating professionals.
• Fund-Raising Professionals: Demand has paused.

Regional Compensation Comparison

• United Kingdom: Returned to the top as the most highly compensated market in Europe.
• Germany: Juniors are better compensated than their UK peers.
• Southern Europe (Spain, Italy, Cyprus): Principals are rewarded at higher levels than UK peers.
• Benelux (Belgium, Netherlands): Managing directors are rewarded at higher levels than UK peers.
• Africa: Compensation levels vary, with South Africa and Kenya showing notable trends.

Demographics and Educational Qualifications

• MBA Holders:
  • Group 1: 0 respondents with MBA and both ACA/CPA & JD/solicitor qualifications.
  • Group 2: 23 respondents with MBA and ACA/CPA.
  • Group 3: 5 respondents with MBA and JD/solicitor.
  • Group 4: 224 respondents with just MBA and no other qualifications.
• Non-MBA Holders:
  • Group 5: 44 non-MBA respondents with ACA/CPA.
  • Group 6: 2 non-MBA respondents with JD/solicitor.
  • Group 7: 118 non-MBA respondents with no additional qualifications.

Heidrick & Struggles' Private Equity Practice

• Expertise: Combines deep understanding of PE markets with industry-specific expertise to offer value-adding services.
• Services Offered:
  • Due-diligence support.
  • Pre- and post-acquisition executive search.
  • Leadership assessment.
  • Proactive introductions.
  • Advisory board construction for PE firms and their portfolio companies.
• Team: Over 80 consultants in 50 global offices, with expertise in technology, operations, finance, HR, marketing, compliance, risk, and legal infrastructure.
• Leadership:
  • Daniel Edwards: Global Practice Managing Partner.
  • Michael Di Cicco: Regional Managing Partner, Asia Pacific and Middle East.
  • Todd Monti: Regional Managing Partner, Americas.
  • Richard Thackray: Regional Managing Partner, Europe and Africa.

Key Viewpoints

• Compensation for investment professionals has consistently increased over the past three years.
• Carry remains a significant component of compensation, but is generally lower for infrastructure and operating professionals.
• The UK has become the top market for compensation, despite the uncertainty around Brexit.
• There is a noticeable shift towards special situations strategies due to low returns in credit and high equity pricing.
• Educational qualifications, particularly MBAs, are prevalent among respondents, though not all professionals have them.
• Hiring demand remains low, with a focus on replacement hiring and specialist recruitment.