How much does a principal in private equity make? (2024)

How much does a principal in private equity make?

On average, Principals at mid-sized-to-large firms in the U.S. earn in the $500K – $800K range in terms of base salary + year-end bonus. These numbers will be lower in other regions, such as Europe and Asia, and at smaller funds, such as a startup PE firm with $100 million under management.

What is a principal in private equity?

At the senior level, a private equity director, principal, or managing director is directly involved with client negotiations. It's usually up to these senior folks to ultimately win and close deals.

How much does a Blackstone private equity principal make?

$249K (Median Total Pay)

The average Private Equity Principal base salary at The Blackstone Group is $167K per year. The average additional pay is $82K per year, which could include cash bonus, stock, commission, profit sharing or tips.

How much does a principal make at KKR?

The typical KKR Principal salary is US$222,844 per year. Principal salaries at KKR can range from US$146,397 - US$339,210 per year.

What are top salaries in private equity?

In short, if you're at a top mega fund, then you can expect to get paid between $350-$400k per year. These numbers reflect total compensation paid to private equity associates in 2022.

Is principal higher than VP in private equity?

The Principal

Principals are the next most senior role and usually need to have several years of experience as a VP before making the leap. Principals are evaluated on their ability to find promising companies and close deals on them. They are also involved in the management of and execution of company portfolios.

Is principal higher than director in private equity?

The specific designation of Vice President or Principal differs at each firm – sometimes Principal is the equivalent of Senior Associate (like at KKR) and sometimes it is the role right before Managing Director. The most senior role is Managing Director and Partner.

How much does a VP at private equity make?

Vice President Private Equity Salary
Annual SalaryMonthly Pay
Top Earners$244,500$20,375
75th Percentile$190,000$15,833
25th Percentile$115,000$9,583

How much does a director at KKR make?

$314K (Median Total Pay)

The average Director base salary at KKR is $199K per year. The average additional pay is $115K per year, which could include cash bonus, stock, commission, profit sharing or tips.

How much do top private equity partners make?

In the previous articles on the private equity career path and private equity salaries, we quoted a base salary + bonus range of $700K to $2 million USD for Partners. This compensation range is wide because so much depends on the fund size, your seniority, and the fund's performance.

Who pays more Blackstone or KKR?

Of the top 3 common jobs between the two companies, KKR salaries averaged $6,482 higher than The Blackstone Group.

How much does a private equity CFO make?

How much does a Cfo Private Equity make? As of Jan 22, 2024, the average annual pay for a Cfo Private Equity in the United States is $151,302 a year. Just in case you need a simple salary calculator, that works out to be approximately $72.74 an hour. This is the equivalent of $2,909/week or $12,608/month.

How much does the CEO of Principal Financial Group make?

Principal Financial Group's CEO is Dan Houston, appointed in Nov 2014, has a tenure of 9.17 years. total yearly compensation is $13.80M, comprised of 7.2% salary and 92.8% bonuses, including company stock and options. directly owns 0.12% of the company's shares, worth $23.74M.

Is private equity a stressful job?

While the travel will be less, the work in private equity is very stressful and demanding, so the hours you actually spend working may be more stressful or mentally demanding.

How much does a principal at Bain Capital make a year?

The estimated total pay for a Principal at Bain Capital is $299,773 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $213,251 per year.

Is it prestigious to work in private equity?

Private equity is an alluring career goal for those drawn to the financial world. These companies pay big salaries, plus incentives and bonuses. The potential is there to make a lot of money, even in your first year. And, the career carries a lot of prestige in the finance world.

What is the hierarchy at a private equity firm?

The Private Equity Career Path
Position TitleTypical Age RangeTime for Promotion to Next Level
Senior Associate26-322-3 years
Vice President (VP)30-353-4 years
Director or Principal33-393-4 years
Managing Director (MD) or Partner36+N/A
2 more rows

How hard is it to get promoted in private equity?

Getting promoted in private equity (PE) is not easy. You need to demonstrate exceptional skills, performance, and potential in a highly competitive and demanding environment.

How much does a principal at Apollo make?

The estimated total pay range for a Principal at Apollo Global Management is $261K–$462K per year, which includes base salary and additional pay. The average Principal base salary at Apollo Global Management is $225K per year.

What do people do after PE?

As many private equity firms specialize in certain sectors or asset classes, the experience gained can help with moving into another role in that sector. Private equity professionals also sometimes move into areas like hedge funds or corporate development, where their skills can bring some added value to the table.

Do private equity firms pay well?

Heidrick & Struggle's data suggests that at the top end, a managing partner in a private equity firm with at least $1bn in Assets Under Management (AUM), can expect to earn at least $3.5m in salaries and bonuses, plus around $35m in carried interest over a fund's lifecycle (typically around five years).

Is private equity the most lucrative career?

The private equity space is one of the most competitive, but also offers some of the most lucrative careers in the world of finance. Private equity is often perceived as offering an exit opportunity for those who have already gained experience working in investment banking or investment management.

Is private equity a hard job?

Private equity professionals work long hours and are highly competitive and must think critically, and have a passion for financial investing deals, not just following the markets. Other requirements to start a career in private equity are: Excellent grades and a notable transcript in school.

Is private equity harder than investment banking?

Both investment banking and private equity are demanding careers that require long working hours, although private equity firms tend to have a more relaxed work environment and offer a more flexible schedule.

How much does a Blackstone MD make?

$797K (Median Total Pay)

The estimated total pay range for a Managing Director at The Blackstone Group is $600K–$1M per year, which includes base salary and additional pay. The average Managing Director base salary at The Blackstone Group is $283K per year.

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