The landscape of private equity compensation is undergoing a significant transformation
Rupert Bell, Head of DACH, spoke with eFinancialCareers to provide insight into how these shifts are reshaping the motivations and strategies of professionals within the sector.
"People recognise that private equity is still very well paid, but they want to work in the industry for reasons like having influence over investment decisions and implementing change. Culture has become increasingly important as well."
Rupert Bell, Head of DACH
Carried interest vs owning equity in a general partnership
The article discusses the increasing challenges of generating carried interest in private equity due to increased competition, lower profits from exits, and potentially higher taxes. Carried interest, which is paid to senior employees only after a fund makes a significant profit, has become harder to achieve as PE exits are at a low and governments are talking about potentially increasing taxes on these gains.
Despite these changes, they maintain that young professionals are still drawn to the industry, valuing the influence and cultural aspects of a career in private equity as well as the financial incentives.
Read the full eFinancialCareers article here
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If you would like to discuss trends or opportunities, please reach out.
If you would like to discuss trends or opportunities, please reach out.
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