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Private Equity Salary Guide

Overview of compensation in private equity

Private Equity Salary Guide

In this private equity salary guide, we cover several jobs in the private equity sector and their corresponding midpoint salaries for 2018. There are many positions to fill at private equity firms, which are investment management companies that are involved with acquisitions of private businesses through pooled capital from investors and high net worth individuals.

 

Private Equity Salary theme

 

Private Equity Salary Guide – Jobs in the US

Jobs in private equity are considered some of the most competitive in the finance industry. The most junior professionals in private equity firms are called associates. They mostly list previous work experience in investment banks. Work history is crucial, as firms rarely hire fresh graduates. Associates usually undertake a two- or three-year program that covers on-the-job training. The associates’ responsibilities gradually increase as they gain more knowledge and skills. A vice president in a private equity firm supervises the associates. He/She is also responsible for assisting managing directors and partners in establishing investment strategies and deal negotiations. A vice president can move up the corporate ladder to be a managing director or partner after a few years.

When it comes to skills, candidates who want a career in private equity need to possess strong business analytical skills. They need to stay updated on the latest market and economic trends. Firms also look for candidates with skills in financial modeling, LBO modeling, M&A modeling, and financial analysis. Since private equity firms usually interact with other finance professionals and companies, they prefer candidates who possess excellent skills in management, communication, networking, and negotiation.

 

Private Equity Salary Guide in the US for 2018

Salaries in the private equity sector vary depending on the years of experience and position. The table below shows the private equity salary guide for candidates with average experience and skill sets needed for the job. The figures do not include bonuses, incentives, and other forms of additional compensation.

 

Job TitleBase Salary
Intern/Summer Analyst$51,000
Intern/Summer Associate$84,000
Analyst (Year 1)$73,000
Analyst (3+ Years)$96,000
Associate (Year 1)$120,000
Associate (Year 2)$131,000
Associate (3+ Years)$143,000
Vice President$199,000
Director$315,000

 

Additional Resources

Thank you for reading CFI’s private equity salary guide. To learn more about the private equity sector and advance your career, the following resources will be helpful:

  • Equity Capital Markets
  • Financial Intermediary
  • Key Players in the Capital Markets
  • Private Equity vs Hedge Funds

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