Odyssey Private Equity Compensation Report 2023 Candidate Version 1

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2022 PRIVATE EQUITY

INVESTMENT PROFESSIONALS
COMPENSATION REPORT
September 2023
We are excited to share Odyssey Search Partners’ 2023 Private Equity Investment Professionals
compensation report.
This report is a summary of how investment professionals (IP) in the private equity (PE) industry were
paid in 2022, their current 2023 bases, expected 2023 bonuses, and carried interest. Our survey was
conducted in May through August 2023.
We received survey responses from 1,179 investment professionals that varied across the following
dimensions:
- Title: Analyst, Associate, Senior Associate, Vice President, Principal, and Managing Director/
Partner
- Fund Type: Lower Middle Market, Middle Market, Upper Middle Market, Mega Funds, and
Family Offices
- Investment Strategies: Leveraged Buyout (LBO), Growth Equity (Growth), Venture Capital (VC),
Infrastructure, Real Estate (RE), Distressed/ Special Situations PE, Secondaries, Capital Solutions,
Co-Invest, and ESG/Impact
- Location: 15+ cities across the United States, primarily New York
For more details, please see the methodology section.
We hope you find this report useful and welcome the opportunity to continue the dialogue.
Adam Kahn Anthony Keizner

Managing Partner Managing Partner
ak@ospsearch.com anthony@ospsearch.com
© 2023 Odyssey Search Partners CONFIDENTIAL 1

Private Equity Practice
2023 PE Investment Professional Compensation Report
Table of Contents
1. Key Findings ……………………………………………..…….……………………………… 3

2. Cash Compensation Overview …………………………….....……………………… 4
2.1 Cash Compensation Overview …………………….………………………………………………………………….. 4
2.2 Total 2022 Cash Compensation by Fund Size Summary .….………………….…………………………… 7
3. Cash Compensation …..……………………….....……………………………………... 8

3.1 Investment Strategy …………………………………………………………………………………………………………. 8
3.2 Location .………………………………………………………………………….……..……………………………………….. 9
3.3 Gender ….…………………………………………………………………….…….….………………………………………... 9
3.4 Bonus Deferral ……………………………………………………….…….…………………………………………………. 10
4. Cash Compensation by Title ………………….…………….....……………………… 11

4.1 Analyst …………………………………………………………………………………………………..…………………………. 11
4.2 Associate ……………………………………………………………………………………..…………..………………………. 12
4.3 Senior Associate ………………………………………………………………………………………..…………………….. 15
4.4 Vice President …………………………………………………………………………..………….…..…………………….. 18
4.5 Principal ………………………………………………………………….…………..……………….…..……………………… 21
4.6 Managing Director/ Partner …………..………………………………….……………….……………………………. 24
5. Carried Interest ..…………………………………………………………..……………...... 25

5.1 Title When Carry First Allocated ………………………….…..………….…………………………………………. 25
5.2 Amount of Carry Allocated …..….…………………………………………………….……...................………. 28
5.3 Value of Carry ………………………………………………………………………………..…………………………….. 29
5.4 Carry Vesting …………………………………………..………………………………………………………..……………. 35
5.5 Carry-to-Cash Ratio ……………………………..………………………………………………………………………….. 36
6. Co-Investment Eligibility …………………………………..……………………..……. 37

7. Methodology ……………………………………………………………….………..……. 38
8. Characteristics of Sample ……………………………………………….……………. 39
9. About Odyssey Search Partners …………………………………….…………….. 41

1 – KEY FINDINGS
PRIVATE EQUITY INVESTMENT PROFESSIONALS ARE EXPECTING THEIR

COMPENSATION TO BE 13% HIGHER IN 2023
- PE investment professionals (IPs) continue to be optimistic about their bonuses and are expecting their cash
compensation to be 13% higher at year-end 2023, but across different experience levels, this ranges from 21%
at the most junior level, to flat at the most senior level (page 5). Confidence in 2023 compensation figures comes
from:
- The amount of long-term committed capital that needs to be deployed

- The fact that base salaries continue to increase, and 2023 base salaries are 11% higher than in 2022
- Perceived continued high demand for top PE talent, especially in certain strategies such as capital
solutions and secondaries
- 47% of IPs already having their 2023 bonuses communicated by their firm or contractually guaranteed,
increasing the likelihood that these estimated YE 2023 figures will become realized
- It may turn out that the actual figures investment professionals will receive will be different from expectations;
median compensation expectations for 2022 were 8% higher than the actual figures received last year
THE SIZE OF THE FUND THAT A P RIVATE EQUITY INVESTMENT PROFESSIONAL

INVESTS OUT OF IS A SIGNIFICANT DRIVER OF CASH COMPENSATION
- The size of the current fund an IP invests out of played a very significant role in cash compensation. Between
those with equivalent titles, those investing out of the smallest funds, less than $500M, earned 43-59% less in
2022 cash compensation than those investing out of the largest funds, $10B+ (page 7)
- To further illustrate the effect of fund size on compensation, Associates at funds $10B+ earned 5% more in 2022
cash compensation than Vice Presidents at small funds less than $500M (page 7)
OTHER SIGNIFICANT DRIVERS OF CASH COMPENSATION DIFFERENCES INCLUDE:

- Investment Strategy: IPs at capital solutions, infrastructure, distressed/special situations PE, and secondaries
were paid more in cash compensation in 2022 than those working within LBO funds, while those in venture
capital/growth, co-investment, ESG/impact and real estate were paid less (page 8)
- Location: Those in New York City received the highest total cash compensation in 2022, followed by IPs in San
Francisco, Boston, Connecticut/ Westchester, and then Los Angeles (page 9)
- Gender was not seen to affect total cash compensation in 2022, though there are limitations with comparing
data sets when only 16% of PE IPs in our survey identified as female (page 9)
CARRIED INTEREST IS TYPICALLY FIRST ALLOCATED TO INVESTMENT

PROFESSIONALS AT THE VICE PRESIDENT LEVEL
- Smaller funds (less than $3B) are more likely to allocate carry to Senior Associates than large funds (greater than
$3B); 31% of smaller funds first allocate carry at the Senior Associate level versus 20% of larger funds that first
allocate carry at the Senior Associate level (page 25)
- Investment strategy impacts carry allocation, IPs in venture capital are more likely to receive a carry allocation
earlier than other strategies (page 26)

2 – CASH COMPENSATION OVERVIEW
2.1 Cash Compensation Overview, $ in ‘000s

We examined cash compensation, base salaries, bonuses, and total cash compensation (an IP’s base plus bonus) by
title, fund size, investment strategy, location, and gender. We also examined bonus deferrals, though they are rare
within private equity.
2022 figures (base, bonus, and total) and 2023 bases are actual compensation figures. 2023 bonus/total
compensation figures are expected and almost half of respondents have received guidance towards their 2023
bonus/total compensation. 39% said their 2023 compensation data is a number communicated by their firm and
8% mentioned it is contractually guaranteed, while 53% provided an estimate.
Cash Compensation by Title (Median #’s)
2022 2023
Base Bonus Total* Base Bonus Total*
Analyst $110 $75 $190 $125 $100 $230
Associate $140 $130 $270 $150 $150 $300
Senior Associate $165 $175 $350 $185 $200 $400
Vice President $215 $220 $440 $240 $245 $500
Principal $285 $360 $650 $300 $400 $700
MD/ Partner $400 $550 $1,000 $410 $600 $1,000
*Total is the median of the total compensation (base + bonus). It is not the sum of the median base and median bonus.
TIMING OF BONUS PAYOUT
Analysts: 77% of Analysts reported receiving their bonus at year-end, putting them on the same payout cycle
typically seen at the mid and senior levels within private equity.
Associates: With the majority of Associates in private equity joining from investment banking where bonuses are
typically paid out on a mid-year cycle, private equity Associate bonuses are usually maintained and paid out on a
mid-year bonus payout cycle. In our survey, 54% of Associates reported being on a mid-year bonus cycle while 46%
of Associates reported having their bonus paid out at year-end.
Senior Associates and above: As seniority increases past the Associate level, most investment professionals are
transitioned to a year-end bonus payout. A stub bonus is typically paid out to execute the transition from a mid-
year to a year-end cycle. 78% of Senior Associates reported being on a year-end cycle, 86% of Vice Presidents
reported being on a year-end cycle, and over 90% of Principals and above reported being on a year-end cycle.
Bonus Timing
Analyst
Associate
Senior Associate
and above

2.1 Cash Compensation Overview cont.
Below we show 1) total cash compensation which is then broken out into 2) base salaries and 3) bonuses.
Total Cash Compensation by Title (Median #’s)
Despite slower deal flow in private equity in 2023, investment professionals remain optimistic about their year-end
bonuses. The median compensation is expected to increase across all levels except for MD/ Partner. 47% of IPs
already have had their 2023 bonuses communicated by their firm or contractually guaranteed, significantly
increasing the likelihood that these expected 2023 figures will become realized.
Base Salary Compensation by Title (Median #’s)
Base salaries for all IPs increased 11% on average from 2022 to 2023, and by title, median base salary increases
vary as follows:

2.1 Cash Compensation Overview cont.
Cash Bonus Compensation by Title (Median #’s)
Bonuses are expected to increase 17% but vary by title as shown below. While cash bonuses are expected to
increase between $20-$50K across all titles, the percentage change varies given the relative impact based on the
size of the bonus:

2.2 Total 2022 Cash Compensation by Fund Size Summary
When looking at the data, by both title and the size of the current fund an investment professional is investing
from, we can compare the total cash compensation of IPs to others with the same title investing out of a different
fund size. As seen below, the size of the current fund an investment professional is investing out of had a
significant impact on cash compensation and those investing out of a larger fund typically received more in cash
compensation.
2022 Total Cash Compensation by Title and Current Fund Size

3 - CASH COMPENSATION
Below is an analysis of how investment strategy, location, and gender impact an investment professional's
compensation. Title was held constant to isolate the impact of the below factors on compensation.
3.1 Total Cash Compensation by Investment Strategy

Investment strategy impacts cash compensation as seen below. Several factors likely contribute to differences in
compensation based on investment strategy. We’ve seen that size of fund is a significant driver of compensation,
and investment strategy impacts fund size. In addition, the increased demand for investment professionals in
certain investment strategies is impacting compensation. For example, many firms have raised debut capital
solutions funds, and the secondaries sector has been very active, thus driving demand for investment professionals
for those investing strategies.
Below we expand on the compensation impact of a few investment strategies:
- Capital Solutions: Capital solutions invests across the capital structure and seeks to offer positive returns with
downside protection. Given the flexibility of the investment mandate and ample amount of dry powder from recent
fundraising, this investment strategy tends to attract the strongest candidates and firms have a limited supply of
qualified candidates. Those investing in capital solutions saw a ~22% premium in cash compensation to traditional
LBO investing.
- Secondaries: Those investing in secondaries typically get paid below IPs investing in LBO due to fund economics and
other factors, and in 2021 we noted that those in secondaries were paid ~5% below all IPs. While traditional PE firms
were hesitant to deploy capital in 2022, the secondary market remained active despite worsening global economic
conditions and surpassed $100 billion in total volume for the second consecutive year. 1 As a result, those investing in
secondaries enjoyed compensation 4% above the typical PE IP in 2022.
- Venture Capital: Historically, we’ve seen venture capital cash compensation below those in PE. Venture capital funds
tend to be smaller, and sometimes offset lower cash compensation with carried interest. Global venture capital deal
value fell 67% YoY in December 2022,2 thus demand for IPs was lowered. Compensation for those in venture capital
was 17% below all IPs in 2022, which is lower than in 2021 when those in venture capital were paid ~7% below all PE
IPs.
% Variance from Median Total 2022 Cash Compensation by Investment Strategy
1
Global Secondary Market Review – Jefferies
2
S&P Global Market Intelligence

3.2 Total Cash Compensation by Location
Location has a meaningful impact on total cash compensation. Averaging across titles, only those in New York
earned more than the median; however, the predominance of NY within the PE industry (44% of respondents are
in NY, page 46) has a disproportionate effect on industry compensation. IPs across various other cities earned less
in total cash compensation than the median. Other factors such as investment strategy and fund size are likely also
contributing factors to investment professionals located outside of the major money centers getting paid less.
This report includes medians for investment professionals across all locations in the United States. Below is a
breakdown of the impact of location on compensation as a variance from the median compensation figures. Please
refer to this section when comparing cash compensation depending on your current location.
% Variance from Median Total 2022 Cash Compensation by Location
3.3 Total Cash Compensation by Gender

When looking at cash compensation by gender, no significant differences were found; however, this doesn’t imply
that genders are treated equally. This survey focused on compensation and did not touch upon the challenges that
women face within the PE industry. Even within a survey of this size, 1,100+ respondents, having only 16% of IPs
identify as female leads to difficulties in determining more nuanced analyses of compensation by gender.
% Variance from Median Total 2022 Cash Compensation by Gender*
*Did not include those respondents who answered “prefer not to say” or “non-binary” since the sample populations are not comparable given the low number
of responses.

3.4 Total Cash Compensation Deferral
The vast majority of IPs, 90%, did not have any of their bonus deferred. Only 2% of all IPs had more than 30% of
their 2022 bonus withheld. Bonus deferrals seem to be determined by certain firms; there doesn’t seem to be an
“industry standard” and there is no correlation between an IP’s title/seniority, total compensation, or fund size on
whether a portion of their bonus was deferred.
% of 2022 Bonus Deferred Across All Investment Professionals
Of those few who did have part of their bonus deferred, most had 10% to 30% deferred, which typically will get
paid out evenly over three years.
2022 Bonus Deferral Schedule

4 – CASH COMPENSATION BY TITLE
4.1 Analyst
Below are 2022 base salaries, bonuses, and total cash compensation. In addition we highlight current 2023 base
salaries and expected 2023 bonuses as well as all-in expected 2023 cash compensation figures for Analysts.
Analysts are investment professionals who typically have one to two years of PE experience, joining PE
immediately out of undergrad without prior full-time work experience (one to two years out of college).
Only 4% of Analysts received carried interest in addition to cash compensation, as detailed on page 29.
All Analysts - Cash Compensation Summary3
2022 2023
25th Percentile $105 $60 $175 $115 $80 $200
Median $110 $75 $190 $125 $100 $230
75th Percentile $125 $105 $220 $140 $140 $270
n = 52 IPs with Analyst title
Analyst 1 - Cash Compensation Summary
2022 2023
25th Percentile $100 $45 $130 $110 $70 $175
Median $110 $70 $180 $120 $80 $205
75thPercentile $110 $80 $200 $125 $105 $235
n = 25 IPs with Analyst 1 title
Analyst 2 - Cash Compensation Summary
2022 2023
25th Percentile $105 $70 $190 $120 $100 $220
Median $120 $90 $200 $130 $130 $260
75th Percentile $125 $110 $235 $140 $160 $300
n = 27 IPs with Analyst 2 title
3
There is insufficient data to break out Analyst cash compensation by current fund size

4.2 Associate
Below are 2022 base salaries, bonuses, and total cash compensation. In addition, we highlight current 2023 base
salaries and expected 2023 bonuses as well as all-in expected 2023 cash compensation figures for Associates.
Associates are investment professionals who typically have one to three years of PE experience following an
investment banking or consulting program (three to five years out of college). Most Associate programs in private
equity are two years; however, some programs are three years and Associates 1 through 3 are included.
Only 20% of Associates received carried interest in addition to cash compensation, as detailed on page 30.
All Associates4 - Cash Compensation Summary
2022 2023
25th Percentile $125 $100 $230 $130 $110 $250
Median $140 $130 $270 $150 $150 $300
75th Percentile $150 $165 $320 $175 $200 $350
n = 425 IPs with Associate title
Associate 1 - Cash Compensation Summary
2022 2023
25th Percentile $125 $100 $230 $125 $100 $240
Median $135 $125 $260 $150 $130 $275
75th Percentile $150 $150 $300 $160 $170 $330
n = 210 IPs with Associate 1 title
Associate 2 - Cash Compensation Summary
2022 2023
25th Percentile $125 $100 $245 $140 $130 $280
Median $145 $140 $285 $155 $170 $325
75th Percentile $155 $180 $335 $175 $220 $390
n = 176 IPs with Associate 2 title
4
All Associates includes Associate 1, Associate 2, and Associate 3. Due to limited data for Associates 3, their compensation is not broken out.

4.2 Associate cont.
The size of the current fund an investment professional is investing out of has a significant impact on
cash compensation as seen below.
Associate Cash Compensation by Fund Size (Median #’s)
2022 2023
Less than $500M $125 $100 $220 $135 $100 $245
$500M+ to $1B $125 $120 $240 $140 $125 $260
$1B+ to $3B $140 $130 $275 $150 $150 $300
$3B+ to $5B $140 $150 $300 $150 $175 $320
$5B+ to $10B $150 $150 $300 $170 $175 $340
$10B+ $150 $180 $340 $165 $220 $380
2022 Associate Total Cash Compensation by Fund Size (Median #’s)

4.2 Associate cont.
Over the following six tables, we further detail the cash compensation in terms of fund size data, by showing the
percentiles as well as the medians for each size of current fund.
Current Fund Size Associate Cash Compensation Summary
Less than 2022 2023

$500M Base Bonus Total* Base Bonus Total*
25th Percentile $110 $70 $195 $125 $80 $205
Median $125 $100 $220 $135 $100 $245
75th Percentile $150 $115 $230 $155 $125 $280
2022 2023
$500M+ to $1B
25th Percentile $120 $85 $215 $125 $100 $225
Median $125 $120 $240 $140 $125 $260
75th Percentile $150 $130 $265 $155 $150 $300
2022 2023
$1B+ to $3B
25th Percentile $125 $100 $240 $135 $120 $260
Median $140 $130 $275 $150 $150 $300
75th Percentile $150 $160 $305 $170 $175 $350
2022 2023
$3B+ to $5B
25th Percentile $130 $135 $275 $140 $150 $300
Median $140 $150 $300 $150 $175 $320
75th Percentile $150 $170 $315 $170 $200 $370
2022 2023
$5B+ to $10B
25th Percentile $135 $135 $270 $150 $150 $310
Median $150 $150 $300 $170 $175 $340
75th Percentile $160 $180 $340 $175 $220 $400
2022 2023
$10B+
25th Percentile $145 $150 $300 $150 $170 $345
Median $150 $180 $340 $165 $220 $380
75th Percentile $165 $220 $370 $180 $250 $430

4.3 Senior Associate
salaries and expected 2023 bonuses as well as all-in expected 2023 cash compensation figures for Senior
Associates. Senior Associates are investment professionals who typically have three to five years of PE experience
(five to seven years out of college). The Senior Associate title can be given either before or after business school.
In addition to cash compensation, 47% of Senior Associates received carry as detailed on page 31.
All Senior Associates5 - Cash Compensation Summary
2022 2023
25th Percentile $150 $130 $295 $170 $150 $335
Median $165 $175 $350 $185 $200 $400
75th Percentile $200 $230 $420 $225 $265 $475
n = 177 IPs with Senior Associate title
Senior Associate 1 - Cash Compensation Summary
2022 2023
25th Percentile $140 $120 $270 $160 $140 $300
Median $160 $165 $330 $175 $200 $375
75th Percentile $180 $225 $405 $200 $255 $475
n = 69 IPs with Senior Associate 1 title
Senior Associate 2 - Cash Compensation Summary
2022 2023
25th Percentile $150 $130 $300 $175 $140 $340
Median $170 $175 $350 $190 $215 $415
75th Percentile $200 $240 $425 $225 $260 $475
n = 71 IPs with Senior Associate 2 title
5
All Senior Associates includes Senior Associate 1, Senior Associate 2, Senior Associate 3, and Senior Associate 4. Due to limited data for Senior Associate 3 and Senior Associate 4, their
compensation is not broken out.

4.3 Senior Associate cont.
Senior Associate Cash Compensation by Fund Size (Median #’s)
2022 2023
Less than $500M $145 $135 $285 $155 $150 $325
$500M+ to $1B $165 $150 $310 $175 $160 $350
$1B+ to $3B $165 $175 $350 $190 $200 $400
$3B+ to $5B $170 $205 $370 $180 $225 $400
$5B+ to $10B $200 $225 $430 $230 $275 $490
$10B+ $200 $250 $450 $210 $300 $550
2022 Senior Associate Total Cash Compensation by Fund Size (Median #’s)

4.3 Senior Associate cont.
Current Fund Size Senior Associate Cash Compensation Summary
Less than 2022 2023

25th Percentile $125 $100 $225 $140 $110 $270
Median $145 $135 $285 $155 $150 $325
75th Percentile $155 $160 $330 $175 $200 $400
2022 2023
$500M+ to $1B
25th Percentile $150 $100 $250 $160 $110 $290
Median $165 $150 $310 $175 $160 $350
75th Percentile $175 $185 $355 $200 $200 $385
2022 2023
$1B+ to $3B
25th Percentile $150 $150 $300 $175 $175 $350
Median $165 $175 $350 $190 $200 $400
75th Percentile $180 $225 $405 $225 $250 $475
2022 2023
$3B+ to $5B
25th Percentile $150 $170 $350 $160 $185 $365
Median $170 $205 $370 $180 $225 $400
75th Percentile $180 $265 $415 $200 $265 $445
2022 2023
$5B+ to $10B
25th Percentile $190 $180 $375 $200 $205 $430
Median $200 $225 $430 $230 $275 $490
75th Percentile $215 $250 $445 $250 $300 $545
2022 2023
$10B+
25th Percentile $160 $200 $400 $185 $250 $500
Median $200 $250 $450 $210 $300 $550
75th Percentile $200 $310 $510 $250 $350 $585

4.4 Vice President
salaries and expected 2023 bonuses as well as all-in expected 2023 cash compensation figures for Vice Presidents.
Vice Presidents are investment professionals who typically have four to nine years of PE experience (six to 11 years
out of college). Vice Presidents play the “deal quarterback” on the team.
In addition to cash compensation, 92% of Vice Presidents received carry as detailed on page 32.
All Vice Presidents6 - Cash Compensation Summary
2022 2023
25th Percentile $190 $160 $360 $200 $175 $400
Median $215 $220 $440 $240 $245 $500
75th
Percentile $250 $300 $550 $275 $350 $600
n = 319 IPs with Vice President title
Vice President 1 - Cash Compensation Summary
2022 2023
25th Percentile $175 $170 $350 $200 $185 $395
Median $200 $215 $425 $225 $235 $475
75th
Percentile $225 $300 $500 $255 $350 $575
n = 132 IPs with Vice President 1 title
2022 2023
25th Percentile $200 $155 $375 $210 $165 $425
Median $210 $205 $435 $245 $230 $500
75th
Percentile $250 $280 $525 $300 $305 $575
2022 2023
25th Percentile $200 $185 $400 $225 $190 $430
Median $225 $275 $550 $250 $300 $600
75th Percentile $275 $350 $635 $300 $400 $700
6
All Vice Presidents includes VP 1, VP 2, VP 3, VP 4, and VP 5. Due to limited data for VP 4 and VP 5, their compensation is not broken out.

4.4 Vice President cont.
Vice President Cash Compensation by Fund Size (Median #’s)
2022 2023
Less than $500M $195 $150 $325 $205 $155 $360
$500M+ to $1B $200 $190 $400 $225 $200 $430
$1B+ to $3B $225 $230 $475 $250 $250 $515
$3B+ to $5B $225 $300 $550 $250 $350 $600
$5B+ to $10B $245 $325 $550 $260 $375 $640
$10B+ $240 $350 $600 $275 $390 $700
2022 Vice President Total Cash Compensation by Fund Size (Median #’s)

4.4 Vice President cont.
Current Fund Size Vice President Cash Compensation Summary
Less than 2022 2023

25th Percentile $170 $100 $275 $180 $110 $300
Median $195 $150 $325 $205 $155 $360
75th Percentile $215 $200 $385 $240 $200 $445
2022 2023
$500M+ to $1B
25th Percentile $190 $150 $350 $200 $160 $395
Median $200 $190 $400 $225 $200 $430
75th Percentile $235 $225 $440 $255 $250 $500
2022 2023
$1B+ to $3B
25th Percentile $200 $180 $410 $200 $200 $450
Median $225 $230 $475 $250 $250 $515
75th Percentile $250 $295 $520 $285 $315 $575
2022 2023
$3B+ to $5B
25th Percentile $210 $210 $460 $225 $230 $500
Median $225 $300 $550 $250 $350 $600
75th Percentile $250 $355 $615 $290 $450 $700
2022 2023
$5B+ to $10B
25th Percentile $210 $240 $450 $245 $280 $535
Median $245 $325 $550 $260 $375 $640
75th Percentile $275 $370 $615 $300 $500 $750
2022 2023
$10B+
25th Percentile $205 $280 $525 $240 $315 $600
Median $240 $350 $600 $275 $390 $700
75th Percentile $265 $420 $705 $300 $500 $775

4.5 Principal
salaries and expected 2023 bonuses as well as all-in expected 2023 cash compensation figures for Principals.
Principals are investment professionals who typically have seven to 13 years of PE experience (nine to 15 years of
overall work experience). The Principal grouping is inclusive of those with a Director title.
In addition to cash compensation, 94% of Principals received carry as detailed on page 33.
All Principals - Cash Compensation Summary
2022 2023
25th Percentile $240 $250 $510 $250 $265 $555
Median $285 $360 $650 $300 $400 $700
75thPercentile $350 $475 $795 $350 $500 $850
n = 150 IPs with Principal title

4.5 Principal cont.
Principal Cash Compensation by Fund Size (Median #’s)
2022 2023
Less than $500M $250 $200 $500 $300 $200 $500
$500M+ to $1B $260 $315 $600 $275 $300 $635
$1B+ to $3B $300 $390 $675 $325 $410 $750
$3B+ to $5B $300 $375 $725 $300 $425 $750
$5B+ to $10B $260 $490 $760 $270 $535 $800
$10B+ $295 $515 $815 $340 $550 $885
2022 Principal Total Cash Compensation by Fund Size (Median #’s)

4.5 Principal cont.
Current Fund Size Principal Cash Compensation Summary
Less than 2022 2023

25th Percentile $220 $150 $400 $250 $150 $450
Median $250 $200 $500 $300 $200 $500
75th Percentile $335 $300 $575 $350 $300 $575
2022 2023
$500M+ to $1B
25th Percentile $225 $250 $535 $250 $255 $535
Median $260 $315 $600 $275 $300 $635
75th Percentile $315 $445 $720 $375 $440 $735
2022 2023
$1B+ to $3B
25th Percentile $250 $300 $610 $275 $350 $675
Median $300 $390 $675 $325 $410 $750
75th Percentile $340 $430 $760 $350 $500 $850
2022 2023
$3B+ to $5B
25th Percentile $265 $300 $590 $275 $305 $635
Median $300 $375 $725 $300 $425 $750
75th Percentile $365 $545 $850 $380 $620 $920
2022 2023
$5B+ to $10B
25th Percentile $250 $400 $705 $250 $415 $750
Median $260 $490 $760 $270 $535 $800
75th Percentile $310 $635 $905 $310 $645 $935
2022 2023
$10B+
25th Percentile $250 $435 $705 $285 $405 $785
Median $295 $515 $815 $340 $550 $885
75th Percentile $345 $595 $950 $385 $645 $995

4.6 Managing Director/ Partner
salaries and expected 2023 bonuses as well as all-in expected 2023 cash compensation figures for Managing
Directors/ Partners. Managing Directors typically have 12+ years of PE experience (14+ years of overall work
experience). Investment professionals above Partner refers to those who share in the general partnership of the
firm, and not only share in the economics of the fund but also act as senior leaders within the firm. Managing
Partners have their own economic arrangements that are not covered in depth within this survey, where the focus
is investment professionals at pre-partnership levels.
In addition to cash compensation, 96% of MD/ Partners disclosed carry as detailed on page 34.
All Managing Director/ Partner7 - Cash Compensation Summary
2022 2023
25th Percentile $300 $400 $725 $300 $390 $760
Median $400 $550 $1,000 $410 $600 $1,000
75th Percentile $500 $800 $1,300 $540 $845 $1,435
n = 56 IPs with MD/ Partner title
7
There is insufficient data to break out MD/ Partner cash compensation by current fund size

5 - CARRIED INTEREST
5.1 Title When Carry First Allocated

This section of the report focuses on data related to the title at which private equity firms begin allocating carry to
their investment professionals. Since carry can be such a significant portion of an IP’s total compensation, IPs
prefer to be awarded carry as soon as possible. Compared to historical norms, PE firms have been allocating carry
earlier in an IP’s career to attract and retain top talent.
Historically, the vast majority of private equity firms started to allocate carry at the Vice President title. From
our survey, as shown below, VP is still the most common title for firms to start allocating carry.
Many firms have begun allocating carry to IPs before they reach the Vice President title. Over the past few
years, this trend has become more prevalent; in this year’s survey, 46% of PE IPs say their firm first allocates
carry at the Analyst, Associate, or Senior Associate levels, while 45% and 41% reported the same in our 2022
and 2021 private equity compensation surveys, respectively.8
This trend is even more prevalent when smaller funds are isolated. 51% of IPs working out of funds less than
$3B reported that their firm allocates carry below the VP title, while only 38% of IPs at larger funds said the
same. Most likely, this is a tactic deployed by smaller firms to remain competitive, since larger firms typically
pay more in cash compensation.
Title When Carry is First Allocated
8
Data from 2022 Odyssey Private Equity Compensation Report; 2021 Odyssey Private Equity Compensation Report

5.1 Title When Carry First Allocated cont.
Continuing this point of how smaller and bigger funds differ in the timing of when they first allocate carry, we
see below that of the firms that allocated carry at the Principal title, it is a more common practice for IPs who
invest out of a larger fund than smaller fund, and where a firm allocated carry at the Senior Associate level, it
is more likely for IPs who invest out of a smaller fund.
Title When Carry is First Allocated by Fund Size

5.1 Title When Carry First Allocated cont.
Now looking at carry allocation by investment strategy rather than fund size, we see that initial allocation at
the Vice President level is the most common practice for nearly all strategies. Secondaries and LBO funds are
the most traditional, with the majority of IPs investing using those strategies stating their firm allocates carry
at the VP level.
Venture capital funds are allocating carry significantly earlier than other strategies and allocate carry before
the VP level; based on the survey results, 70% of IPs investing in venture capital said their firm initially
allocates carry for Analysts, Associates, and Senior Associates. Growth equity funds follow with 54% of IPs
stating their firm allocates carry before VP. As shown previously in this report, venture capital funds also paid
the least in total cash compensation across strategies. We speculate that these firms are allocating carry
earlier to offset the pay gap and remain competitive.
To illustrate:
Title When Carry First Allocated by Investment Strategy

5.2 Amount of Carry Allocated
So far, we have looked at when IPs receive carry; now we look at how much carry investment professionals receive
(for investment professionals from our survey whose carry is allocated as a percent of the fund’s carry). Carry
allocations that are based on a portion of the fund’s carry are typically expressed in the form of a share within a
fund’s profit pool and are typically regarded as basis points (bps). 1 basis point is 0.01% of the profit pool.
To give a simplified example: an IP might be given 50 bps. If the fund is $1.5B and generates a 20% return at the
end of the fund, it would create a fund profit pool of $300M; 50 bps, or 0.5%, of the profit equates to $1.5M. As
mentioned, the size of the fund directly affects the value of this share: the larger the fund, the larger the expected
profit pool (assuming the same returns and fee structures). So, IPs at larger funds typically receive a smaller slice of
a larger pie.
Below are the averages of basis points allocated to IPs across various titles and fund sizes.
# of Basis Points in Current Fund by Title*

2023
Senior Vice
Associate Principal MD/ Partner
Associate President
Average 27 43 94 201 306
Less than
77 82 216 491 560
$500M
$500M+ to $1B 31 67 148 273 463
$1B+ to $3B 19 49 108 184 364
$3B+ to $5B 15 31 48 125 223
$5B+ to $10B 12 19 30 92 162
$10B+ 5 7 16 38 65
*Only investment professionals who received carried interest, and allocated as a percentage of fund’s carry

5.3 Value of Carry – Analyst
The number of basis points an individual receives is interesting, but this is naturally followed by the question, “how
much is this share worth?” We asked respondents to estimate the value of their carry using a 2X return
assumption (unless they believe another target is more likely). In the charts below, we see what proportion of
those at each title receive carry; and for those who received carry, what is the estimated current value of their
carry in their current fund and across all funds (both vested and unvested).
Of the 4% of Analysts who received carry, the average value of that carry is $175K – both in their current fund and
across all funds given Analysts only had carry in one fund.
Current Fund/ Across All Funds – Dollar Equivalent of Allocated Carry

5.3 Value of Carry – Associate
Of the 20% of Associates who received carry, the average value of that carry is $550K in their current fund and
$560K across all funds.
Current Fund – Dollar Equivalent of Allocated Carry
All Funds – Dollar Equivalent of Allocated Carry

5.3 Value of Carry – Senior Associate
Of the 47% of Senior Associates who received carry, the average value of that carry is $1,130K in their current fund
and $1,230K across all funds.

5.3 Value of Carry – Vice President
Of the 92% of Vice Presidents who received carry, the average value of that carry is $2,340K in their current fund

5.3 Value of Carry – Principal
Of the 94% of Principals who received carry, the average value of that carry is $5,365K in their current fund and
$7,295K across all funds.

5.3 Value of Carry – MD/ Partner
Of the 96% of MD/ Partners who received carry, the average value of that carry is $8,535K in their current fund

5.4 Carry Vesting
Carried interest must vest in order for investment professionals to keep their share of carry. Carry typically vests
on average in five years but ranges widely from as little as one year to as long as ten years. A higher title within a
private equity firm does correlate with being allocated more carry but does not result in a shorter vesting
schedule.
If an investment professional leaves a firm, they typically get to keep their vested carry and will lose their unvested
carry. The basis of carried interest vesting varies; over 50% of IPs have carry that starts to vest from the time of
inception of each new fund, while other IP’s vesting schedules begin after the first anniversary of the deal/fund
closing.
Below are vesting schedules for the maximum amount of carry to vest among IPs who have carried interest.
Vesting Schedule for Maximum Carry to Vest
*Other represents IPs whose carry does not vest over a set schedule and instead vests on a deal-by-deal basis or they receive discretionary
vesting that occurs annually.
Most, 62%, of IPs report having their carry vest evenly each year over a set duration (straight line). The remainder
reported having their carry vest on a cliff vesting schedule, upon the liquidity event of each related deal, or in
other methods or a combination such as having some of their carry vested evenly in a straight line with the rest of
their carry realized over a one-year cliff.
How Does Carry Vest?

5.5 Carry-to-Cash Ratio
Carry is often understood as holding the potential to be the most significant part of a PE IP’s compensation. To
illustrate how significant, in the chart below, we compare the value of carry in an IP’s current fund to the total cash
compensation an IP received, in the form of a ratio. We see this ratio being almost 9x at the most senior level.
However, to restate, the ratio is only for those who receive carry. The majority of Analysts and Associates do not
receive carried interest and total cash compensation (base + bonus) represents their entire compensation.
Average Ratio of Carry-to-Total 2022 Cash Compensation by Title

6 – CO-INVESTMENT ELIGIBILITY
Below is a summary of co-investment eligibility broken down by title. There is a general pattern that the more
senior an investment professional is, the more likely it is they will have co-investment rights. Over 75% of IPs with
titles of Vice President and above have co-investment rights. Co-investment rights vary in numerous dimensions,
including the amount that can be invested, liquidity terms, and whether individuals are lent money by the firms to
increase the size of their co-investments. Most, 54% of investment professionals, do not have leverage on the
dollars they invest, while 46% are offered leverage.
Co-investment rights can be described in two categories: the right to invest in the fund as a whole or the right to
invest only in specific deals (usually deals that the investment professional has worked on). Fund-based eligibility is
more common than deal-based eligibility as seen below.
Co-Investment Eligibility

7 - METHODOLOGY
Broken down by title, the typical undergrad years of survey respondents are listed below. From this, we can see
that as seniority increases, promotions become less standardized and the possible experience range for more
senior-level IPs widens. IPs with MBAs tend to have graduated earlier than their counterparts without an MBA. We
also found that senior-level IPs at mega-funds and upper middle-market PE firms tend to have a slightly earlier
undergrad year, as promotions at those firms tend to be harder to earn.
Typical Undergrad Years

2022 Title #
No MBA MBA
Analyst n = 52 2021 - 2022 -

Associate n = 425 2018 - 2020 -
Senior Associate n = 177 2016 - 2018 2013 - 2016
Vice President n = 319 2012 - 2017 2010 - 2015
Principal n = 150 2008 - 2014 2007 - 2011
MD/ Partner n = 56 2009 and earlier 2009 and earlier
- All compensation figures provided in the report are based on US dollars in thousands
- Compensation figures are rounded to five thousand and percent figures are rounded to the nearest whole
number
- Total median cash compensation is calculated by taking the median of the total compensation (individual
base + individual bonus) rather than taking (median base + median bonus); the same is true for the
average total cash compensation
- n = refers to the number of people responding with a certain characteristic, typically by title
- ( ) around a number denotes it is negative
- When discussing carry, 0.01% is equal to 1 basis point (BPS) of the carry pool; 1% is equal to 100 basis
points (BPS) of the carry pool
- The current fund refers to the size of the current fund that the respondent invests out of (not total AUM
of the firm)

8 – CHARACTERISTICS OF SAMPLE
8.1 Respondents’ Firm Characteristics

All 1,179 respondents were US-based investment professionals at private equity firms.
- Respondents’ firms ranged by private equity investment strategy, current fund size, type, and sector
focus.

8.2 Respondent Demographics
- The respondent pool was comprised of various titles, ethnicities, locations, and genders as follows:

9 – ABOUT ODYSSEY SEARCH PARTNERS
Odyssey Search Partners

Odyssey Search Partners is a premier, retained buyside-focused search firm, founded in 2010 and led by Adam Kahn
and Anthony Keizner. We specialize in placing Investment and IR Professionals in the private equity, hedge fund,
family office, and private credit sectors. Our expertise spans all levels of recruitment, from pre-MBAs to Partners
and Portfolio Managers. We approach every search with diversity in mind.
Odyssey Private Equity Practice

The core focus of our practice is placing investment professional talent across PE strategies including VC/growth,
LBO, special situations, and hybrid firms. We systematically map entry-level candidates as well as current PE Analysts,
Associates, Senior Associates, Vice Presidents, Principals, and senior professionals. ESG, Infrastructure, and Real
Estate are among the areas where we’ve been most active in 2022. Outside of investment professional placements,
we support our PE clients’ firms with hiring in five main areas: 1) deal sourcing/origination specialists, 2) research
professionals, 3) portfolio company support, 4) capital markets, and 5) investor relations/marketing.
www.odysseysearchpartners.com
The report was compiled based on analysis by Anthony Keizner and

Ada Blige who oversee Odyssey’s consulting and compensation work
and Odyssey’s dedicated research team.
For further information on this report, please contact:
privateequity@ospsearch.com
212-750-5677


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2022 PRIVATE EQUITY

For more details, please see the methodology section.

Adam Kahn Anthony Keizner

© 2023 Odyssey Search Partners CONFIDENTIAL 1

1. Key Findings ……………………………………………..…….……………………………… 3

3. Cash Compensation …..……………………….....……………………………………... 8

4. Cash Compensation by Title ………………….…………….....……………………… 11

5. Carried Interest ..…………………………………………………………..……………...... 25

6. Co-Investment Eligibility …………………………………..……………………..……. 37

© 2023 Odyssey Search Partners CONFIDENTIAL 2

PRIVATE EQUITY INVESTMENT PROFESSIONALS ARE EXPECTING THEIR

- The amount of long-term committed capital that needs to be deployed

THE SIZE OF THE FUND THAT A P RIVATE EQUITY INVESTMENT PROFESSIONAL

OTHER SIGNIFICANT DRIVERS OF CASH COMPENSATION DIFFERENCES INCLUDE:

CARRIED INTEREST IS TYPICALLY FIRST ALLOCATED TO INVESTMENT

© 2023 Odyssey Search Partners CONFIDENTIAL 3

2.1 Cash Compensation Overview, $ in ‘000s

Cash Compensation by Title (Median #’s)

TIMING OF BONUS PAYOUT

© 2023 Odyssey Search Partners CONFIDENTIAL 4

Total Cash Compensation by Title (Median #’s)

Base Salary Compensation by Title (Median #’s)

© 2023 Odyssey Search Partners CONFIDENTIAL 5

Cash Bonus Compensation by Title (Median #’s)

© 2023 Odyssey Search Partners CONFIDENTIAL 6

2022 Total Cash Compensation by Title and Current Fund Size

© 2023 Odyssey Search Partners CONFIDENTIAL 7

3.1 Total Cash Compensation by Investment Strategy

% Variance from Median Total 2022 Cash Compensation by Investment Strategy

© 2023 Odyssey Search Partners CONFIDENTIAL 8

% Variance from Median Total 2022 Cash Compensation by Location

3.3 Total Cash Compensation by Gender

% Variance from Median Total 2022 Cash Compensation by Gender*

© 2023 Odyssey Search Partners CONFIDENTIAL 9

% of 2022 Bonus Deferred Across All Investment Professionals

2022 Bonus Deferral Schedule

© 2023 Odyssey Search Partners CONFIDENTIAL 10

All Analysts - Cash Compensation Summary3

Analyst 1 - Cash Compensation Summary

Analyst 2 - Cash Compensation Summary

© 2023 Odyssey Search Partners CONFIDENTIAL 11

All Associates4 - Cash Compensation Summary

Associate 1 - Cash Compensation Summary

Associate 2 - Cash Compensation Summary

© 2023 Odyssey Search Partners CONFIDENTIAL 12

Associate Cash Compensation by Fund Size (Median #’s)

2022 Associate Total Cash Compensation by Fund Size (Median #’s)

© 2023 Odyssey Search Partners CONFIDENTIAL 13

Current Fund Size Associate Cash Compensation Summary

Less than 2022 2023

© 2023 Odyssey Search Partners CONFIDENTIAL 14

All Senior Associates5 - Cash Compensation Summary

Senior Associate 1 - Cash Compensation Summary

Senior Associate 2 - Cash Compensation Summary

© 2023 Odyssey Search Partners CONFIDENTIAL 15

Senior Associate Cash Compensation by Fund Size (Median #’s)

© 2023 Odyssey Search Partners CONFIDENTIAL 16

Current Fund Size Senior Associate Cash Compensation Summary

Less than 2022 2023

© 2023 Odyssey Search Partners CONFIDENTIAL 17

All Vice Presidents6 - Cash Compensation Summary

Vice President 1 - Cash Compensation Summary

Vice President 2 - Cash Compensation Summary