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Private equity (PE) compensation in London and broader Europe remains highly competitive in 2025, driven by factors like fund size, asset class, experience, and regional differences. Data from recent surveys shows that total compensation typically includes base salary, annual bonus, carried interest (carry), and sometimes co-investments. Growth in base and bonuses has slowed compared to previous years, with a 3-year compound annual growth rate (CAGR) for total compensation around 6.5% across roles. Associates and principals have seen stronger growth (10.3% and 9.6% CAGR, respectively), while partners average 5.9%. Compensation is highest in larger funds (>€10B) and asset classes like distressed credit and buyouts. In the UK (including London), base + bonus CAGR is 12.3%, slightly above the European average of 10.9%. Women are gaining ground at junior and mid-levels with higher compensation growth rates. London-specific data for infrastructure PE highlights even higher payouts at senior levels, with partners reaching median cash compensation of £1.28m.
Salaries are presented in euros (€) unless otherwise noted, based on standardized reporting. For context, approximate conversions to GBP (£) use an exchange rate of ~€1 = £0.85 (as of December 2025), but actual pay may vary by currency and location.
Associate-Level Roles
Associates in PE typically have 2-5 years of experience, often coming from investment banking or consulting. Compensation emphasizes base and bonus, with carry becoming more significant post-promotion.
Factors influencing pay: Fund size (e.g., €60,000 base in small funds vs. €206,970 in >€10B); asset class; and specialization (e.g., tech or healthcare boosts value). Demand exceeds supply, pushing funds to offer more to attract talent from tech sectors.
Principal/VP-Level Roles
Principals (often equivalent to VPs) handle deal execution and portfolio management, with 5-10 years of experience. Carry becomes a larger component here.
By fund size: Base ranges from €1,308,890 in smaller funds to €8,507,270 in >€10B. Trends show robust hiring at this level despite reduced mid-level demand overall.
Director/MD-Level Roles
Directors and Managing Directors (MDs) focus on deal sourcing and leadership, with 10+ years of experience.
Data for this level is often grouped with principals or partners in broader surveys, but compensation scales with AUM (e.g., up to €10,788,390 base in >€40B funds).
Partner/Managing Partner Roles
Partners lead strategy and fundraising, with 15+ years of experience. Total comp is heavily carry-driven.
By fund size: Base up to €3,592,500 in >€10B funds; carry higher in larger AUM (>€40B: €583,130 all funds).
PE-Backed Executive Roles (e.g., Portfolio Company Leaders)
For executives in PE-backed companies, compensation includes equity/LTIP alongside base and bonus.
Market Trends and Hiring Insights
Compensation Structures: Carry vests over ~5 years (68% straight-line, 53% cliff); up to 5% vests on first close. Co-investments are common in fund-of-funds strategies.
Hiring: Reduced mid-level demand but robust senior hiring. Firms specialize in capital formation amid consolidation. 58% of funds are ≤€1B, favoring multi-strategy approaches.
Regional Notes: UK/London leads in growth rates; Germany shows associate strength; France excels in executive pay. Overall, 34% of professionals are UK-based.
Other Factors: Pay rises with experience (e.g., 20+ years: €460,000+ total cash) and fund performance. Economic caution has tempered 2024 increases, but talent shortages in specialized areas keep pressure on offers.
Salaries are presented in euros (€) unless otherwise noted, based on standardized reporting. For context, approximate conversions to GBP (£) use an exchange rate of ~€1 = £0.85 (as of December 2025), but actual pay may vary by currency and location.
Associate-Level Roles
Associates in PE typically have 2-5 years of experience, often coming from investment banking or consulting. Compensation emphasizes base and bonus, with carry becoming more significant post-promotion.
| Role/Region | Base Salary | Annual Bonus | Carry (Most Recent Fund) | Total Cash (Base + Bonus) | Notes |
|---|---|---|---|---|---|
| Europe (All) | €101,200 (avg) | €117,410 (avg) | €61,740 (avg) | €209,200 (avg) | Higher in distressed credit (€111,650 carry) and direct lending (€136,370 carry). 3-year CAGR: 10.3%. |
| UK/London | €101,200 (avg, aligned with Europe) | €117,410 (avg) | €61,740 (avg) | €231,920 (avg) | Base range: £90,000-£120,000 (~€106,000-€141,000); bonus 50-150% of base (up to £200,000+ all-in for top performers). Varies by fund size—lower for mid-market, higher for megafunds. |
| France | €101,200 (avg) | €117,410 (avg) | €61,740 (avg) | €264,400 (avg) | 3-year base + bonus CAGR: 10.1%. |
| Germany | €101,200 (avg) | €117,410 (avg) | €61,740 (avg) | - | Strong growth: 14.6% 3-year base + bonus CAGR. |
| Other Europe | €101,200 (avg) | €117,410 (avg) | €61,740 (avg) | - | 3-year base + bonus CAGR: 7.1%. |
Principal/VP-Level Roles
Principals (often equivalent to VPs) handle deal execution and portfolio management, with 5-10 years of experience. Carry becomes a larger component here.
| Role/Region | Base Salary | Annual Bonus | Carry (Most Recent Fund) | Total Cash (Base + Bonus) | Notes |
|---|---|---|---|---|---|
| Europe (All) | €188,280 (avg) | €188,280 (avg) | €156,300 (avg) | €3,106,820 (avg, incl. carry) | Highest in growth equity (€189,100 carry) and fund of funds (€182,000). 3-year CAGR: 9.6%. |
| London (Infrastructure PE) | - | - | - | £190,000-£570,000 (range) | Cash comp range; higher for larger funds. |
Director/MD-Level Roles
Directors and Managing Directors (MDs) focus on deal sourcing and leadership, with 10+ years of experience.
| Role/Region | Base Salary | Annual Bonus | Carry (Most Recent Fund) | Total Cash (Base + Bonus) | Notes |
|---|---|---|---|---|---|
| London (Infrastructure PE) | - | - | - | £255,000-£975,000 (Directors); £505,000-£1,700,000 (MDs) | Cash ranges; bonuses can be substantial in high-performing funds. |
Partner/Managing Partner Roles
Partners lead strategy and fundraising, with 15+ years of experience. Total comp is heavily carry-driven.
| Role/Region | Base Salary | Annual Bonus | Carry (Most Recent Fund) | Total Cash (Base + Bonus) | Notes |
|---|---|---|---|---|---|
| Europe (All) | €326,700 (avg) | €151,910 (avg) | €314,500 (avg) | Up to €17,195,000 (high cases) | Highest in distressed credit (€600,000 carry, €3,195,600 total) and buyouts (€354,400 carry, €3,343,750 total). Median gross comp: £500,000 (~€588,000). 3-year CAGR: 5.9%. |
| London (Infrastructure PE) | - | - | - | £1,280,000 (median); up to £2,750,000 (highest) | For partners/investment strategy leaders; eight-figure potential in top funds. |
PE-Backed Executive Roles (e.g., Portfolio Company Leaders)
For executives in PE-backed companies, compensation includes equity/LTIP alongside base and bonus.
| Role/Region | Gross Cash Compensation (Base + Bonus) | Notes |
|---|---|---|
| CEO (France) | $953,000 (~€880,000 / £748,000) | Leads Europe in gross cash; includes equity not detailed here. |
| CEO (Europe General) | Varies by region; lower in UK vs. France. | Organizational structure and demographics influence pay; strong global trends in equity grants. |
Compensation Structures: Carry vests over ~5 years (68% straight-line, 53% cliff); up to 5% vests on first close. Co-investments are common in fund-of-funds strategies.
Hiring: Reduced mid-level demand but robust senior hiring. Firms specialize in capital formation amid consolidation. 58% of funds are ≤€1B, favoring multi-strategy approaches.
Regional Notes: UK/London leads in growth rates; Germany shows associate strength; France excels in executive pay. Overall, 34% of professionals are UK-based.
Other Factors: Pay rises with experience (e.g., 20+ years: €460,000+ total cash) and fund performance. Economic caution has tempered 2024 increases, but talent shortages in specialized areas keep pressure on offers.
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