THE 2010

PRIVATE EQUITY
C

COMPENSATION
REPORT
 The 2010 Private Equity Compensation Report

Table of Contents
The compensation analysis in this year’s Private Equity Compensation Report is divided into 11 sepa-
rate sections, one for each of the areas covered by the report—Analyst, Associate, Senior Associate,
Vice President, Principal, Partner, CFO, Controller, Accounting, Fund Marketing and Administrative/
Executive Assistant. Most of the sections have data on base salaries, bonuses and total cash com- Glocap Search LLC
156 West 56th Street,
pensation for the years 2006 through 2009/10 (much of the 2009/10 base and bonus information was New York, NY 10019
based on going forward projections provided through October 2009). Phone: 212-333-6400 • Fax: 212-333-6401
www.glocap.com
The first page of each section contains our analysis for the particular title. That commentary is followed
by four pages of charts (except for the Analyst and Controller sections which do not have data on pri- Adam D. Zoia
CEO
vate equity fund of funds). The first page of charts is a summary of compensation at the three types
Head of Hedge Fund Practice
of funds covered in the report—later-stage private equity (buyout/growth equity funds), early-stage
venture capital and private equity fund of funds—regardless of fund size. As fund size remains the key Brian Korb
driver of compensation, the next three pages give further detail on compensation at each type of asset Senior Partner
class depending on the amount of assets under management. We segment the private equity (buyout/ Head of Private Equity Practice
growth equity) funds into the following groupings: small ($0-300 million in assets), mid-small ($300-750
Steve Skoczylas
million), mid-sized ($750 million – 2 billion), large ($2-5 billion) and mega-funds ($5 billion and above). Managing Director
Head of Accounting/Operations Practice
There are four fund sizes for early-stage venture capital and private equity fund of funds—small (0-$300
million), mid-sized ($300-750 million), large ($750 million – 2 billion) and then funds with $2 billion or Jennifer Whalen
more. For venture capital funds these include multi-stage funds while for fund of funds the largest cat- Managing Director
Fund Marketing/IR Practice
egory includes hybrid/co-investment funds. Once again, we have added data on carried interest ranges
to the charts for Senior Associates, Vice Presidents, Principals and Partners at buyout/growth equity Sachi Gahan
funds. These appear in a yellow bar at the bottom of the charts. Managing Director
Head of Venture Capital Practice
All pages with data have graphs at the top showing the historical trends in average base salaries and
average bonuses (and thus average total compensation). The charts below those graphs give a more Pamela Harrington
Senior Vice President
detailed look at the percentile breakdowns of the numbers as well as a look at the percent change from Private Equity Practice/MBA Product
last year’s numbers.
Sarah Woods
Introduction 5 Senior Vice President
Fund of Funds/Secondaries
Methodology 6
Executive Summary 12 Shauna Swerland
Partner
Carried Interest 13 Head of Admin/Support Staff Practice
Market Analysis: Compensation at Portfolio Companies 14
Aaron Finkel
Compensation Overview By Asset Class 24 Vice-President
Compensation Overview By Asset Class 25 Head of Publications
and Assets Under Management
Reuters Media
Compensation Overview 3 Times Square, 18th Floor
New York, NY 10036
SECTION I: Analysts 26 Customer Service: 646-223-6783

SECTION II: Associates 32 Jim Beecher

Publisher
SECTION III: Senior Associates 38 jim.beecher@thomsonreuters.com

SECTION IV: Vice Presidents 44 Eamon Beltran

Research Manager
SECTION V: Principals 50
David Cooke
SECTION VI: Partners 56 Art Director

SECTION VII: CFOs 62 Cover/Layout Design

Aydan Savaser,
SECTION VIII: Controllers 68 aydan.savaser@gmail.com

SECTION IX: Accounting 74

SECTION X: Fund Marketing/IR 78

SECTION XI: Administrative/Executive Assistants 80

4 the 2010 private equity compensation report

 The 2010 Private Equity Compensation Report

INTRODUCTION
This is the ninth annual Private Equity Compensation Report published by Glocap and Thomson Reuters (for-
merly Thomson Financial). Each year we are committed to providing you with a report that accurately reflects
compensation trends. We are proud that over the years our report has grown into a trusted resource for the
entire private equity community—later-stage private equity (buyout/growth equity), venture capital and pri-
vate equity fund of funds.

For this year’s report we felt compelled to push back the publishing date just a bit. We did this because the major
waves of hiring (pre-MBA and post-MBA) occurred later this year than in previous years. For example, in 2008 many
later-stage private equity funds had completed their pre-MBA hiring by late spring/early summer. In contrast, in
2009 many funds had not even started hiring until late July/early August (for 2010 start dates). At the post-MBA
level, funds that had previously locked in graduating MBAs by the end of the summer (or even earlier), were instead
still extending offers in the fall. If we had published the report over the summer we would not have been able to
present what we believe is the most accurate and up-to-date data and analysis for two segments of the market
for private equity professionals that are both the most active and which also help indicate the initial direction
for compensation of other, more senior professionals. Publishing later in the year allowed us to capture the most
relevant data that other reports which come out earlier in the year cannot.

As we have done in the past, we feel the need to point out that this report is often mistakenly called a “survey.”
Unlike other reports, the statistics herein are not the result of answers to questionnaires sent to private equity
professionals. We feel that using only self-reported data may not accurately reflect the true market (given the
many nuances in classifying titles, compensation, etc.) and may display some selection bias as well. Rather, the
compensation data in our report is compiled from several sources including actual placement data from searches
executed by Glocap, candidate data maintained by Glocap in the course of its search business, input from Glocap
recruiters who are familiar with compensation in their fields of expertise and interviews/discussions with fund
professionals. Given that the compensation data is collected confidentially by Glocap and not from responses to
surveys sent to private equity firms, we do not publish a list of “participating” firms whose employees are repre-
sented. We are nevertheless, confident that the data points represent a cross-section of professionals at many of
the leading firms in each asset class and fund size category.

Another way this report differs from others is that its data does not only represent what firms have paid in the
past. In fact, in many ways, it may be more accurate to think of the data we present as reflecting what firms are
currently paying and what they plan to pay in the immediate future. The ability to include this type of “forward-
looking” compensation data is critical to our report. For example, many of the Associate data points listed in this
report (those that were the reason why we published a bit later this year) are from offers recently extended in
2009 for future start dates into 2010. The same is true for some of the Senior Associate data which is collected from
offers made to second year MBAs in 2009 for start dates after graduation in 2010. To reflect the forward-looking
nature of the data we have labeled the last column of the data in each of the charts to read 2009/2010. We believe
presenting this type of look-ahead makes this report an even more valuable compensation planning tool.

The Partners at Glocap and the executive team at Thomson Reuters hope this report provides you with useful guid-
ance and, as always, we welcome your feedback.

Brian Korb Jim Beecher

Senior Partner Publisher
Glocap Search LLC Thomson Reuters

the 2010 private equity compensation report

5
 The 2010 Private Equity Compensation Report
Executive Summary
Following several consecutive years in which compensation
had been on an upward trajectory, the growth has come to an
abrupt stop. While some funds are keeping compensation flat,
the net result is that compensation across all segments of the
market (buyout/growth equity, venture capital and fund of
funds) is trending down.
Much of the pullback in compensation can be attributed to
the current state of the market in which deal activity has been
curtailed and fundraising has plunged. This is a stark difference
from the past several years when fee revenue from strong fund-
raising and active deal flow was a main driver of compensation
growth. The dramatic fall-off in activity has also reduced the
immediate need for new hires and created a “buyers market”
in which there is a large supply of candidates for relatively few
positions, another factor that gave firms justification to keep
compensation at bay. With layoffs across Wall Street penetrat-
ing into private equity, candidates’ own expectations for com-
pensation have been tempered and pressure to raise compen-
sation was further mitigated by the diminished threats from
hedge funds and competing private equity funds, which in pre-
vious years had lured away top talent with lucrative offers.
EXECUTIVE SUMMARY
Despite the reduction in hiring, funds still place a premium on
star talent and remain cognizant of rewarding their top per-
formers. In the current market, most firms have concluded that
keeping compensation flat is a good sign, and this is in line with
candidates’ expectations. We have observed funds taking three
different approaches/philosophies to compensation:
• Let’s Ride it Out Together: These are the firms that have
told their investment professionals, ‘we shared in the up-
side, now we’ve all got to share in the downside by shoul-
dering the burden together.’ These funds cut 2009 com-
pensation across the board.
• Maintaining the Status Quo: At these funds, Partners have
made a conscious move to absorb a larger percentage of the
hit in compensation than they have in the past in order to
minimize disruption and to keep their employees content.
• The Hybrid Approach: These funds are choosing to tier
compensation based on levels of performance. The net
result is increased variability in bonuses in which top per-
formers are being kept relatively steady and lower bonus-
es are being used as a signal that the fund will be expect-
ing more from the others.
Geography
We continue to view the market for private equity talent as a
national one, and in general, have not found a significant varia-
tion in compensation for investment professionals based on
geography. Accordingly, we have found that hiring firms do not
feel the need to adjust compensation for differences in cost of
living from one city to another. Compensation is affected more
by the type of candidates a fund seeks to hire than where the
fund is located. For example, if a fund located outside of major
financial center wants to hire a top investment professional
from New York, it will have to pay New York compensation, or
it will stand less chance of attracting that individual (an excep-
12
tion being if the individual had a strong preference for moving
to that city for personal reasons in which case the fund might
be able to pay lower compensation). When we see a fund in a
geographic region outside of a major financial center paying
compensation that is significantly lower than the average for
another fund of similar size it indicates to us that that fund
may predominantly hire local candidates from local firms and/
or candidates who want to be in that locale.
Venture Capital
Overall, compensation at venture capital funds did not decline as
much as it did at buyout/growth equity funds. A key factor why
is that VC funds do not charge transaction fees so they felt less
of an impact in revenue due to the lower levels of overall PE deal
activity. Venture capital funds, however, still face challenges—
it’s been a tough climate for fundraising and exits and ultimately
compensation is, on average, flat compared to 2008 levels. As
was the case with buyout/growth equity funds, base salaries
held steady with any downward shifts in compensation coming
primarily from lower bonuses. Within venture, some funds that
only invest in later-stage companies were reclassified as growth
equity. Since these funds were often amongst those paying high
compensation their reclassification also played a role in compen-
sation being lower.
We noticed more venture capital funds evolving a portion of
their activities into late-stage investing. As this happened, these
funds were competing with later-stage buyout/growth equity
funds for candidates with similar deal skills, and this kept com-
pensation strong at those funds.
Fund of Funds
Compensation at fund of funds was flat to down, with the most
prominent decreases occurring at fund of funds operated by
investment banks. As was the case with other private equity
funds the major shifts in compensation occurred at the bonus
level with annual base salaries staying relatively flat. Fund of
funds, especially the larger ones that continue to continue to
develop their co-investment and secondary investing strate-
gies, remain active and are where we see steady hiring.
Some General Observations
As opposed to past years when compensation was consistently
on the upswing, this year most titles in this Report saw compen-
sation fall. Compensation is now flat or declining in most seg-
ments of the private equity market including buyout/growth
equity, venture capital and private equity fund of funds. Over-
all, annual base salaries were generally flat, with the majority
of the pullback in compensation almost exclusively evident in
variations to year-end bonuses. The pullback resulted in com-
pensation levels that more closely resembled what compensa-
tion looked like two years ago:
• The largest reduction in compensation this year occurred at
the Associate level at mega firms where average compensa-
tion fell 10% to $275,000. In 2008, Associate compensation at
mega-firms rose 6% and the year before that it surged 22%.
• Total average compensation for Senior Associates at large
the 2010 private equity compensation report
the 2010 private equity compensation report

Fund of Funds

Associates at Small Fund of Funds Associates at Mid-Sized Fund of Funds Associates at Large Fund of Funds Associates at Large FoFs/Hybrid-Co-
($0-300 Mln in Assets) ($300-750 Mln in Assets) ($750 Mln - 2 Bln in Assets) Investment Funds ($2 Bln + in Assets)

180k 180k 180k $166,000 $162,000

180k $154,000
$163,000
$145,000
$142,000 $141,000
160k 160k 160k
$134,000 160k
$127,000 $129,000 $126,000
140k $113,000
140k $121,000 140k 140k
$112,000 $110,000 67k 69k 66k
$108,000 61k
120k 120k 120k 54k 56k 54
48k 120k
47k 49k 47
43k
100k 38k 39k 100k 100k 100k
37k 37
80k 80k 80k 80k

60k 60k 60k 60k

93k 96k 97k 96k
86k 88k 89k 87k
74k 74k 78k 80k 80k 79k
40k 71k 73 40k 40k 40k

20k 20k 20k 20k

0k 0k 0k 0k
2006 2007 2008 2009/10 2006 2007 2008 2009/10 2006 2007 2008 2009/10 2006 2007 2008 2009/10

Avg. Base Avg. Bonus Avg. Base Avg. Bonus Avg. Base Avg. Bonus Avg. Base Avg. Bonus

Associates at Small Fund of Funds Associates at Mid-Sized Fund of Funds Associates at Large Fund of Funds Associates at Large FoFs/Hybrid-Co-Investment Funds
($0-300 Mln in Assets) ($300-750 Mln in Assets) ($750 Mln - 2 Bln in Assets) ($2 Bln + in Assets)

The 2010 Private Equity Compensation Report

Base Salary Base Salary Base Salary Base Salary
2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change
37

Mean 71k 74k 74k 73k -1% Mean 78k 80k 80k 79k -1% Mean 86k 88k 89k 87k -2% Mean 93k 96k 97k 96k -1%
75th Percentile 77k 80k 81k 79k 75th Percentile 83k 86k 88k 88k 75th Percentile 91k 93k 94k 93k 75th Percentile 111k 108k 109k 109k
Median 70k 72k 71k 70k Median 75k 78k 77k 75k Median 83k 87k 86k 84k Median 87k 91k 91k 91k
25th Percentile 65k 67k 65k 64k 25th Percentile 71k 73k 72k 70k 25th Percentile 80k 75k 74k 74k 25th Percentile 71k 74k 76k 78k

Bonus Bonus Bonus Bonus

2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change
Mean 37k 38k 39k 37k -5% Mean 43k 47k 49k 47k -4% Mean 48k 54k 56k 54k -4% Mean 61k 67k 69k 66k -4%
75th Percentile 46k 48k 50k 46k 75th Percentile 56k 60k 62k 57k 75th Percentile 60k 66k 68k 65k 75th Percentile 70k 75k 76k 74k
Median 34k 36k 37k 33k Median 39k 46k 45k 44k Median 45k 51k 52k 50k Median 53k 57k 57k 53k
25th Percentile 25k 27k 28k 25k 25th Percentile 31k 33k 34k 30k 25th Percentile 38k 40k 42k 40k 25th Percentile 46k 46k 48k 45k

Total Cash Compensation Total Cash Compensation Total Cash Compensation Total Cash Compensation
2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change 2006 2007 2008 2009/10 Change
Mean 108k 112k 113k 110k -3% Mean 121k 127k 129k 126k -2% Mean 134k 142k 145k 141k -3% Mean 154k 163k 166k 162k -2%
75th Percentile 108k 115k 119k 117k 75th Percentile 124k 131k 135k 132k 75th Percentile 132k 146k 150k 148k 75th Percentile 159k 168k 171k 168k
Median 103k 106k 106k 103k Median 111k 115k 116k 114k Median 130k 137k 138k 136k Median 139k 146k 148k 146k
25th Percentile 93k 97k 96k 92k 25th Percentile 105k 109k 109k 103k 25th Percentile 122k 124k 125k 124k 25th Percentile 121k 124k 128k 127k

Data in these charts do not include compensation from carried interest. See Executive Summary for a discussion on carry.

Associates