PE Vs. VC In Battle Of Compensation

Extracted 05OCT2011 from

2011-2012 Holt-Thomson Reuters Private Equity and Venture Capital Compensation Report

That the buyout firms in the study manage more money, on average, than the venture firms accounts for some of the difference. Salaries and bonuses are paid largely out of management fees, which in turn are based mainly on assets under management. The venture firms in the study have a median of $712 million in assets under management, less than the median of $951 million in assets under management for the LBO/growth equity firms.

...venture firms in our sample generate a median of $1.29 million in fees per investment professional every year, more than the $1.10 million at LBO/growth firms. Such statistics help explain why salary and bonus compensation at venture firms in the study, though smaller by assets under management, are as close as they are to the LBO/growth equity firms.

Report available at