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1、PRIVATE EQUITY PRACTICE 2022 North American Private Equity Operating Professional Compensation SurveyA message from the authorsWelcome to our 2022 North American Private Equity Operating Professional Compensation Survey. Together with our survey of private equity investment professionals, this repor
2、t provides a comprehensive picture of the compensation that North American private equity (PE) executives are currently receiving. Deal activity is at record levels. With firms paying full price for their investments, the pressure is on operating professionals to ensure deals reach their full potent
3、ial. We see in this report that in order to attract the right people, firms are raising compensation, providing increased job flexibility, and casting a wide net in their search for candidates. We hope you enjoy reading the survey, which remains the only one of its kind. As always, suggestions are w
4、elcome, so please feel free to contact usor your Heidrick & Struggles representativewith questions and comments.With warmest regards,On confidentialityThe North American private equity operating professional compensation survey, 2021, was conducted on an anonymous basis; no data relating to the iden
5、tity of individual respondents or their employers is included in the following report.Jonathan GoldsteinRegional Managing Partner, Americas Private Equity PJohn RubinettiPartner Private Equity PAcknowledgmentsThe authors wish to thank Mohd Arsalan and Akshat Singhal for their contributions to this r
6、eport.Diverse region, inclusive workforces: Diversity and inclusion policy and practice in Asia PacificHEIDRICK & STRUGGLES3 MethodologyIn an online survey conducted in the fall of 2021, we asked participants to provide compensation data for 2019, 2020, and 2021. All data collected is self-reported
7、by private equity operating professionals and has been aggregated to evaluate trends in compensation packages, including base salary, bonus, and carried interest plans (carry). Responses from 186 participants are included in the survey results. In each compensation table, we report mean base, bonus,
8、 and carry for each of six levels of private equity operating professionals. Please note that the mean can be influenced by particularly high or low data points, especially when the number of respondents in a given group is small. Carried interest is calculated using “carry dollars at work,” which i
9、s the expected return on total carry participation across all vehicles, based on achieving a net 2x return (above hurdle and after fees) in a vehicle charging a 20% performance fee. For example, 7 points (700 bps) of carry (out of a possible 100) in a $500 million fund with 20%carry would result in
10、$7 million of carrydollars at work (500 X 0.2 X 0.07 = 7).All compensation figures in tables and charts are reported in USD thousands unless otherwise noted.A note on titlesWhile title structures vary according to firm, we have divided respondents into six groups based on level and responsibility. F
11、irm leader (e.g., managing partner, head of portfolio operations, etc.): Most senior levelat the firm. Typically, although not always, one of the founders. General partnership level (e.g., operating partner, general partner, managing director, etc.): Provenoperational track record. Experienced board
12、 member. Sometimes on the investment committee. One step below general partnership level (e.g., operating principal, operating executive, director of portfolio operations, operations director, etc.) Vice president: Works closelywith the portfolio and might have board exposure or seats. Associate: Mo
13、st junior, entry level. Most of the work is research and analysis. Senior or executive advisor: Typically apart-time role that can consume 550% of the individuals time. Frequently exclusive to one PE firm, although the individual might have other non-PE board relationships and responsibilities.2022
14、NORTH AMERICAN PRIVATE EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY4 Executive summary1 PitchBook, 2021 Annual US PE Breakdown, January 2022, .2 PitchBook, 2021 Annual US PE Breakdown, January 2022, .This years survey includes a review of 2021 activity in North American private equity, our thou
15、ghts on the major hiring trends for operating professionals, and a deep dive into current compensation packages for operating professionals.While this data is from 2021, we have observed a more dramatic increase in compensation than we have seen, even beyond these numbers. This trend is being reflec
16、ted across all private equity positions.Diverse region, inclusive workforces: Diversity and inclusion policy and practice in Asia PacificHEIDRICK & STRUGGLES5 Private equity: The big picture (page 7)Private equity had a banner yearin 2021. GPs closed 8,624 deals fora combined $1.2 trillion, over 50%
17、above the previous annual recordfor deal value.1 The $1.2 trillionin deal value is 64% higher thanthe previous record from 2019.US PE exit activity shattered theprevious annual records for bothnumber of exits closed and their totalvalue. In 2021, PE firms exited 1,731US companies with an aggregateen
18、terprise value of $854.3 billion.2Fundraising continues to be robustand bigger funds are leading tobigger dealsyet dry powder levelsare substantial as well. 2021 wasperhaps the best year yet to raise afund, and 2022 may be even better.LPs continue to lift their privatemarket allocations, a shift rei
19、nforcedby the expectation of lower publicequity returns beginning in 2022.Operating professionals: Hiring trends (page 8)Twenty-one percent of executivesconsidered themselves to be industrygeneralists; the most commonspecialist categories were lifesciences (17%) and industry (16%).Generalists also d
20、ominated thebreakdown of functional expertise,at 22%, followed by focus areas insales (17%) and marketing (15%). Twenty-eight percent had beenmanagement consultants in theirimmediate prior role, and 26% hadbeen a CEO. Only 7% had been aPE operating executive, and only27% had been previously employed
21、by a portfolio company of theircurrent GP or investment advisor.Operating professionals: Cash compensation trends (page 12) Cash compensation heldsteady at firms with $10.1 billionand more in firm AUM.By firm AUM, compensation wasalso strong in the mid-range of$3.1 billion to $10 billion. Looked at
22、by fund AUM, cashcompensation was slightly higher atthose with $5.1 billion to $10 billionthan those with more than $10 billion. Base salaries continued to increase,but the amount of increases reportedwas smaller in 2021 than in 2020.Non-cash compensation (page 20)The vast majority of respondentseli
23、gible for carried interest see it veston a straight-line schedule.Most respondents are not eligibleto receive warrants or options.However, 60% of senior or executiveadvisors and 35% of operatingpartners (those one step below thegeneral partnership level) are eligible.Average warrant participation fo
24、rthese two groups is $3.9 millionand $8.7 million, respectively.As with warrants or options, mostrespondents report not being eligible for direct equity participation. Amongthose who do, average cumulativedirect equity participation is highest at the firm leader level ($28 million), far outpacing ev
25、ery other category. Solid majorities of respondents atalmost all professional levels toldus that they have co-investmentrights. Whether co-investment rightsare based on the performance offunds or individual deals varies byseniority, with the highest fund-based participation reported by firmleaders (
26、73%) and those one stepbelow general partnership level (69%).Most vice presidents, associates,and senior or executive advisors canco-invest based on individual deals.2022 NORTH AMERICAN PRIVATE EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY6 Breakdown of respondents reporting an increase in 2021
27、base salary (%)General observations on compensation trends (%)BaseBonus444553356IncreaseDecreaseNo change535041Amount of base salary increase (USD, thousands)$50 or below$50 or below$51$100$51$100$101$150$101$150More than $200More than $200$151$200$151$200Breakdown of respondents reporting an increa
28、se in 2020 bonus salary (%)Amount of bonus salary increase (USD, thousands)7611403191535642021vs.20202020 vs. 20192020 vs. 2019more integral than ever before; they are becoming more involved in investment decision making, developing deal themes and theses, and sourcing deals. Some clients even expec
29、t the number of operating professionals to match investment professionals over time.As integral as the operating executive role is, private equity firms are offering more geographic flexibility. More firms that once wanted their operating partners located in the same office are now saying operating
30、partners do not have to relocate as long as theyre willing to travel.In the past year, we have seen a slight shift in openness among our clients to C-level talent with P&L experience, even if they do not have prior PE exposure. Rather than solely considering professionals with previous operating exe
31、cutive experience, firms are now giving consideration to people who come out of industry and have simply had some exposure to private equity, even at the CEO level. It is, however, too early to tell if this is a lasting shift or driven by considerations specific to 2021s conditions.How best to compe
32、nsate these executives remains a question firms wrestle with. LPGP agreements are very strict about how firms can spend money or charge for expenses, and it can be hard to fit operating partners into that construct. Some firms run these expenses through their portfolio companies to pay operating exe
33、cutives, but that, too, can be difficult because it needs to be permitted through shareholder agreements or special permission. Even so, compensation for operating executives remains so strong that we are now seeing carry being awarded even to junior operating executives, which has traditionally bee
34、n rare. We are also seeing executives new to an operating executive role being compensated on par with those who have previous experience in this role. In addition to the need to pay competitively, this is also driven by the fact that executives new to the industry often leave behind equity compensa
35、tion when they take new roles.Looking ahead, since this survey was collected, we have observed an increase in compensation even beyond these numbers, which is being reflected across all PE positions. The role of the operating executive will be increasingly important as the strong competition for tra
36、nsactions compels private equity firms to pay higher multiples for their investments.In addition, in our experience, private equity firms remain very interested in attracting diverse operating executives. The pool is larger than that of diverse candidates for investment professional positions becaus
37、e of the wider range of backgrounds operating executives come from. We hope to be able to report in more detail on diversity in this role in future reports.PitchBooks 2021 report found In 2021, GPs closed 8,624 deals for a combined $1.2 trillion, over 50% above the previous annual record, set in 201
38、9, for deal value.3 Markets are awash in liquidity and the possibility for a capital gains tax increase has been adding to the momentum to sell. In 2021, PE firms exited 1,731 US companies with an aggregate enterprise value of $854.3 billion.4 A majority of these exits are large, driven by the publi
39、cprivate multiple spread. To capitalize on the interest of corporates flush with balance sheet cash and higher valuations, general partners are stepping up their exit timetables. They have also turned to partial sales and recapitalizations, and have put high-quality assets into so-called continuatio
40、n funds, as GP-led secondaries are now known.Fundraising was robust in 2021389 funds closed, for a combined $301.3 billion.5 GPs have been able to quickly put their capital to work and go back for more. Bigger funds and record levels of dry powder have led to bigger deals.Given the state of the indu
41、stry, demand for operating executives in North America continues to be very strong. Firms continue to recruit heavily for heads of talent, chief financial officers (CFO), and head of portfolio operations roles, and we are seeing substantial interest in bringing on operating executives with digital e
42、xpertise. In terms of role structure, PE firms are making the operating executive role 3 PitchBook, 2021 Annual US PE Breakdown, January 2022, .4 PitchBook, 2021 Annual US PE Breakdown, January 2022, .5 PitchBook, 2021 Annual US PE Breakdown, January 2022, .In a fast-growing industry, firms are seek
43、ingand paying fora wider range of operating executivesDiverse region, inclusive workforces: Diversity and inclusion policy and practice in Asia PacificHEIDRICK & STRUGGLES7 This report includes the views of private equity operating professionals across all levels of seniority and with a wide range o
44、f industry focus, functional expertise, prior roles, employers, responsibilities, experience, and education. Over the years, this report has allowed us to track notable changes in the role of operating professionals.The percentage of respondentspreviously employed by GPs fellonce again, to 27%; it h
45、adreached a high of 60% in 2013.6 There was a rollback of thosewho are self-employed, to 25%from 34% in our 2018 survey.7 The emphasis on creatingvalue has grown stronger:While 85% of operating professionalssaid that planning value creation wasa key part of their job in 2018, thatpercentage jumped t
46、o 94% in 2021.In 2014, 83% said driving value-creation initiatives was part oftheir jobs; in 2021, 89% said so. Fifty-six percent of respondentssaid their firms offered a clearpath to becoming a partner ormanaging director. While thatis a majority, the percentage isunchanged since our 2013 survey.Op
47、erating executives backgrounds and role structure6 Jonathan Goldstein and William Bruce, 2014 Operating Executive Executive Compensation Report: Survey Analysis, Heidrick & Struggles, .7 Jonathan Goldstein and John Rubinetti, 2019 North American Private Equity Operating Professional Compensation Sur
48、vey, Heidrick & Struggles, .2022 NORTH AMERICAN PRIVATE EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY8 Profile of respondents (%)Industry focusImmediate prior roleFunctional expertisePreviously employed by portfolio company of current GP/investment advisorConsumer marketsCEOFinancial servicesCFO
49、GeneralistCOO or presidentIndustrialDivisional CEOLife sciencesFinanceGeneralistHuman resourcesLean/SCM/operationsMarketingTechnology/softwareManagement consultantEducationPE operating executiveEnergyOtherOtherSalesTechnologyOther13621262872255716161735312229131715102YesNo2773Diverse region, inclusi
50、ve workforces: Diversity and inclusion policy and practice in Asia PacificHEIDRICK & STRUGGLES9 5355566447454425101Average number of of operating executives and operating advisors employed, by fund AUMAverage number of operating executives and operating advisors employed, by firm AUMLess than $500mL
51、ess than $500m$500m$1.0bn$500m$1.5bn$1.1bn$1.5bn$1.6bn$3.0bn$1.6bn$3.0bn$3.1bn$5.0bn$3.1bn$5.0bn$5.1bn$10.0bn$5.1bn$10.0bn$10.1bn$20bnMore than $10.0bnMore than $20bn42757885127671391281281411141313624162014Average number of operating executivesAverage number of operating advisorsLocals vs. commuter
52、sAt your company, is there a clear path to becoming partner or managing director?Live where the office is locatedYesCommute to officeNoLocals vs. commutersDistribution of employer typeFull timeGeneral partnerPart timeSelf-employedSeparate legal entity or operating companyPortfolio company123456 or m
53、ore 1None215216113451236 or more 456 or more NoneNone6613611N/A11561267035547N/AN/AN/A2022 NORTH AMERICAN PRIVATE EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY10 Scope of operating executive role and board representation (%)Scope of role Average number of portfolio company board seat by levelMan
54、aging partner, head of portfolio operations (firm leader)123456 or more None1312224195Operating partner, general partner, managing director (general partnership level)Operating principal, operating executive, director of portfolio operations, etc. (one step below general partnership level)Senior or
55、executive advisor (refers to a part-time role)Value-creation planDriving value- creation initiativesDue diligenceBoard representationManaging external consultant engagementsPost-deal M&A activityHiring or firing management teamsInterim managementDeal sourcingDeal executionOther948979575647472424694N
56、ote: Numbers may not sum to 100%, due to rounding.Diverse region, inclusive workforces: Diversity and inclusion policy and practice in Asia PacificHEIDRICK & STRUGGLES11 Experience and education (%)Managing partner, head of portfolio operations, etc. (firm leader)Managing partner, head of portfolio
57、operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partnership level)Operating partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, director of portfolio operations, etc. (one step below
58、 general partnership level)Operating principal, operating executive, director of portfolio operations, etc. (one step below general partnership level)Vice presidentVice presidentAssociateAssociateSenior or executive advisor (refers to a part-time role)Senior or executive advisor (refers to a part-ti
59、me role)Years of experience, by levelMBA, by level15 years610 yearsYesNo1115 years1620 years2125 yearsMore than 25 years861450455112267287215144672028 3232859565358020594114865347Note: Numbers may not sum to 100%, due to rounding.State of operating executive compensationThere are three primary reven
60、ue streams funding compensation: fund management fees, portfolio company oversight fees, and time billed directly to portfolio companiesand, as we have noted, firms still seek to reconcile how best to compensate operating executives within their spending options. As a result, the patterns of funding
61、 cash compensation in 2021 remain similar to our 2018 survey.In terms of bonuses, executives most often reported a blending of criteria: Formulaic bonuses can be based on the performance of the firm, a specific fund or team, or the individual professional. Twenty-three percent of respondents said th
62、eir formulaic bonus was based on firm performance and 19% said it was based on individual performance. But 50% said it was based on these two factors and fund/team performance. Looking at the results for discretionary bonuses, 67% said that their bonuses are entirely discretionary and 19% said that
63、their own performance is the sole criterion, a decrease of nine percentage points from our 2018 survey.Only fund management feeOnly portfolio company oversight feesOnly time billed directly to portfolio companiesFund management fee and portfolio company oversight fees and Time billed directly to por
64、tfolio companiesFund management fee and time billed directly to portfolio companiesPortfolio company oversight fees and time billed directly to portfolio companiesFund management fee and portfolio company oversight feesFunding cash compensation2022 NORTH AMERICAN PRIVATE EQUITY OPERATING PROFESSIONA
65、L COMPENSATION SURVEY12 Formulaic5019823Discretionary6719311Basis of bonus plan (%)Based on firm performanceBased on individual performanceBased on fund/team performanceCombination916928749133235133236Cash compensation rises, on the whole, as assets under management (AUM) increase:At firms where AUM
66、 is more than$20.0 billion, average cashcompensation for firm leaders suchas the managing partner or head ofportfolio operations is $2.5 million,up from $1.8 million in our 2018 survey,and carry is $33.8 million, up from$32 million. At firms where AUM is $10.1 billionto $20.0 billion, average cashco
67、mpensation for firm leadershas fallen to $1.5 million from$3.3 million, as has carry, to$18.9 million from $35.3 million.Viewed by most recent fund, averagecash compensation is $2.6 million, andcarry is $17.7 million at funds above$10 billion. Average cashcompensation and carry is $2.9 millionand $2
68、7.3 million, respectively, at fundsof $5.1 billion to $10 billion.Average base, bonus, and carry: Firm leaderManaging partner, head of portfolio operations, etc.By firm AUMNumber of respondentsCarrySalaryLess than $500m$500m$1.5bn$3.1bn$5.0bn$5.1bn$10.0bn$10.1bn$20.0bnMore than $20.0bnAverage carry
69、(USD, thousands)Average bonus 2020 (USD, thousands)Average base 2020 (USD, thousands)Firm leader compensationNote: Only includes compensation of full-time operating executives.Diverse region, inclusive workforces: Diversity and inclusion policy and practice in Asia PacificHEIDRICK & STRUGGLES13 4003
70、379578001,1336954002472604003831,81712,5009,21717,40019,60018,86733,80031242233125223Average base, bonus, and carry: Firm leaderManaging partner, head of portfolio operations, etc.By fund AUMNumber of respondentsCarrySalaryAverage carry (USD, thousands)Average bonus 2020 (USD, thousands)Average base
71、 2020 (USD, thousands)3772804358604351,7258503403158008001,1251,7179,8336,80012,97513,60027,25017,667Less than $500m$500m$1.0bn$1.1bn$1.5bn$1.6bn$3.0bn$3.1bn$5.0bn$5.1bn$10.0bnMore than $10.0bn650Note: Only includes compensation of full-time operating executives.2022 NORTH AMERICAN PRIVATE EQUITY OP
72、ERATING PROFESSIONAL COMPENSATION SURVEY14 1201614116791816136912Number of respondentsCarrySalaryLess than $500m$500m$1.5bn$1.6bn$3.0bn$3.1bn$5.0bn$5.1bn$10.0bn$10.1bn$20.0bnMore than $20.0bn2,0003,083There has been a substantial shift in cash compensation at this level from our 2018 survey. In 2018
73、, the highest cash compensation by AUM was to be found at funds with $1.6 billion to $3.0 billion under management. Now it is at firms with $10.1 billion to $20 billion under management: $1.2 million, which was narrowly ahead of firms with more than $20 billion under management. Carry was also highe
74、st for general partners at firms with $10.1 billion to $20 billion under management: $12.6 million, compared with $6.2 million at the largest firms.Average base, bonus, and carry: General partnership levelOperating partner, general partner, managing director, etc.By firm AUM2505483736155285965982282
75、494356085789,77110,77310,58312,6296,161General partnership levelAverage carry (USD, thousands)Average bonus 2020 (USD, thousands)Average base 2020 (USD, thousands)Note: Only includes compensation of full-time operating executives.Diverse region, inclusive workforces: Diversity and inclusion policy a
76、nd practice in Asia PacificHEIDRICK & STRUGGLES15 150180Average base, bonus, and carry: General partnership levelOperating partner, general partner, managing director, etc.By fund AUM5101211102451413121029Number of respondentsCarrySalary3925044196235584056613393385409005426,8834,3205,5186,1707,5004,
77、963Less than $500m$500m$1.0bn$1.1bn$1.5bn$1.6bn$3.0bn$3.1bn$5.0bn$5.1bn$10.0bnMore than $10.0bn1631382,300Average carry (USD, thousands)Average bonus 2020 (USD, thousands)Average base 2020 (USD, thousands)Note: Only includes compensation of full-time operating executives.2022 NORTH AMERICAN PRIVATE
78、EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY16 10310386133Cash compensation rose notably at this level from our 2018 survey, assessed by both AUM and most recent fund, at firms with less than $10.1 billion under management.22133164325419213482743548211Average base, bonus, and carry: One step be
79、low general partnership levelOperating principal, operating executive, director of portfolio operations, operations director, etc.By firm AUMNumber of respondentsCarryCarrySalarySalaryNumber of respondents$1.6bn$3.0bn$3.1bn$5.0bn$5.1bn$10.0bn$10.1bn$20.0bnMore than $20.0bn350350383363365358485466465
80、2942231732852143433,5003,9333,1834,2944,822One step below general partnership levelAverage carry (USD, thousands)Average carry (USD, thousands)Average bonus 2020 (USD, thousands)Average bonus 2020 (USD, thousands)Average base 2020 (USD, thousands)Average base 2020 (USD, thousands)Note: Only includes
81、 compensation of full-time operating executives.1,6251,3752,3757502,1002,3253001,921By fund AUMLess than $500m$500m$1.0bn$1.1bn$1.5bn$1.6bn$3.0bn$3.1bn$5.0bn$5.1bn$10.0bnMore than $10.0bn373210313305135349145Diverse region, inclusive workforces: Diversity and inclusion policy and practice in Asia Pa
82、cificHEIDRICK & STRUGGLES17 $500m$1.5bnAssociate and vice president levelAt this level, we do not break out compensation by fund size, given the relatively low number of respondents. We do see notable variation in base, bonus, and carry.ResponsesLowAverageHighBase 2020Associate7$100$137$200Vice pres
83、ident22$120$205$360Bonus 2020Associate7$20$80$150Vice president22$30$171$500Carry, all fundAssociate1$150$150$150Vice president13$200$1,915$6,400Carry, most recent fundAssociate1$150$150$150Vice president13$100$1,450$3,900Average base, bonus, and carry: Associate and vice president(USD, thousands)No
84、te: Only includes compensation of full-time operating executives.2022 NORTH AMERICAN PRIVATE EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY18 Senior advisor and related rolesAverage base, bonus, and carry: Senior or executive advisor (refers to a part-time role)4010010010010010010131N/AN/AN/A1122
85、27263111212N/AN/AN/A3422113Number of respondentsNumber of respondentsCarryCarrySalarySalary2001672701673726104001731,0006,0003,5004,5253,000Average carry (USD, thousands)Average carry (USD, thousands)Average bonus 2020 (USD, thousands)Average bonus 2020 (USD, thousands)Average base 2020 (USD, thousa
86、nds)Average base 2020 (USD, thousands)4004002,5001,000By firm AUMBy fund AUMLess than $500m$500m$1.5bn$1.6bn$3.0bn$3.1bn$5.0bn$5.1bn$10.0bn$10.1bn$20.0bnMore than $20.0bnLess than $500m$500m$1.0bn$1.1bn$1.5bn$1.6bn$3.0bn$3.1bn$5.0bn$5.1bn$10.0bnMore than $10.0bn600250250250250250500Diverse region, i
87、nclusive workforces: Diversity and inclusion policy and practice in Asia PacificHEIDRICK & STRUGGLES19 Managing partner, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, di
88、rector of portfolio operations, etc. (one step below general partnership level)Vice presidentAssociateSenior or executive advisor (refers to a part-time role)Managing partner, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partner
89、ship level)Operating principal, operating executive, director of portfolio operations, etc. (one step below general partnership level)Vice presidentAssociateSenior or executive advisor (refers to a part-time role)Non-cash compensationOur survey covers four forms of non-cash compensation: carried int
90、erest, warrants or options, direct equity participation, and co-investment rights. As noted in previous surveys, vesting takes place on a straight-line schedule for the majority of respondents eligible for carried interest.Carry is most commonly calculated on a whole-fund basis. Among senior advisor
91、s, however, 75% reported that they were eligible for deal-by-deal carry participation.Where carried interest vests on a deal-by-deal basis, the years for carry vesting ranged from 3.67 for senior or executive advisors to 5 for associates.Carried interest Basis of carried interest allocation (%)Vesti
92、ng schedule structure (%)Entirely discretionaryTime weightedOtherOtherBased on titleStraight lineBased on formulaCliff1003813502626488315482213541112245312Note: Numbers may not sum to 100%, due to rounding. For the senior or executive advisor level, only part-time executives, and for other levels on
93、ly full-time executives, were considered.10013632515543111741141161151312651862022 NORTH AMERICAN PRIVATE EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY20 Managing partner, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partner
94、ship level)Operating principal, operating executive, director of portfolio operations, etc. (one step below general partnership level)Vice presidentAssociateSenior or executive advisor (refers to a part-time role)Basis of carried interest vesting (%)Fund basisDeal-by-deal basis1007525158539624159247
95、7Managing partner, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, director of portfolio operations, etc. (one step below general partnership level)Vice presidentAssociate
96、Senior or executive advisor (refers to a part-time role) Deal-by-deal basisResponses4224516Years for carry vesting4.754.774.254.605.003.67Fund basisResponses1332238N/A2Years for carry vesting5.854.945.394.25N/A3.50Diverse region, inclusive workforces: Diversity and inclusion policy and practice in A
97、sia PacificHEIDRICK & STRUGGLES21 Note: Numbers may not sum to 100%, due to rounding. For the senior or executive advisor level, only part-time executives, and for other levels only full-time executives, were considered.The largest proportions of those who can get warrants or options are 60% of seni
98、or or executive advisors and 35% of those at the general partnership level, with both percentages increasing since our last survey in 2018. Average warrant participation (based on the firm achieving its base case targets) for these two groups is $3.9 million and $8.7 million, respectively.Warrants o
99、r options Basis of carried interest allocation (%)NoYes1006040198159635651783Managing partner, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, director of portfolio operat
100、ions, etc. (one step below general partnership level)Vice presidentAssociateAverage warrant participation based on the company achieving its base case targetsResponses32371N/A9Value (USD, thousands)7,5008,7041,693N/AN/A3,861Managing partner, head of portfolio operations, etc. (firm leader)Operating
101、partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, director of portfolio operations, operations, etc. (one step below general partnership level)Vice presidentAssociateSenior or executive advisor (refers to a part-time role)2022 NORT
102、H AMERICAN PRIVATE EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY22 Note: Numbers may not sum to 100%, due to rounding. For the senior or executive advisor level, only part-time executives, and for other levels only full-time executives, were considered.Senior or executive advisor (refers to a pa
103、rt-time role) Average cumulative direct equity participation (based on the firm achieving its base-case targets) is highest at the firm leader level: $28 million, up from $5.7 million in our 2018 survey.Direct equity participation Employed by public or private firm (%)PublicPrivate100871389111009288
104、911Managing partner, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, director of portfolio operations, etc. (one step below general partnership level)Vice presidentAssocia
105、teAverage cumulative equity participation based on the company achieving its base case targetsResponses254N/AN/A2Value (USD, thousands)28,000990563N/AN/A250Managing partner, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partnersh
106、ip level)Operating principal, operating executive, director of portfolio operations, operations, etc. (one step below general partnership level)Vice presidentAssociateSenior or executive advisor (refers to a part-time role)Diverse region, inclusive workforces: Diversity and inclusion policy and prac
107、tice in Asia PacificHEIDRICK & STRUGGLES23 Note: Numbers may not sum to 100%, due to rounding. For the senior or executive advisor level, only part-time executives, and for other levels only full-time executives, were considered.Senior or executive advisor (refers to a part-time role) Managing partn
108、er, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, director of portfolio operations, etc. (one step below general partnership level)Vice presidentAssociateResponses135034
109、3321More than 70% of firm leaders, operating partners, and operating principals do have co-investment rights. At the highest levels of leadership, investment rights are based on the performance of funds. This is the case for 73% of firm leaders, 69% of those at one step below the general partnership
110、 level. Associates and senior or executive advisors can co-invest based on individual deals.Co-investment rightsCo-investment rights (%)Basis of co-investment (%)NoDeal basedYesFund based1001004852746926316814653286357358274278732227Managing partner, head of portfolio operations, etc. (firm leader)O
111、perating partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, director of portfolio operations, operations, etc. (one step below general partnership level)Vice presidentAssociateSenior or executive advisor (refers to a part-time role)
112、Managing partner, head of portfolio operations, etc. (firm leader)Operating partner, general partner, managing director, etc. (general partnership level)Operating principal, operating executive, director of portfolio operations, operations, etc. (one step below general partnership level)Vice preside
113、ntAssociateSenior or executive advisor (refers to a part-time role)2022 NORTH AMERICAN PRIVATE EQUITY OPERATING PROFESSIONAL COMPENSATION SURVEY24 Senior or executive advisor (refers to a part-time role) Note: Numbers may not sum to 100%, due to rounding. For the senior or executive advisor level, o
114、nly part-time executives, and for other levels only full-time executives, were considered.Copyright 2022 Heidrick & Struggles International, Inc. All rights reserved. Reproduction without permission is prohibited. Trademarks and logos are copyrights of their respective owners.Leaders of Heidrick & S
115、truggles Private Equity PracticePrivate Equity PracticeHeidrick & Struggles global Private Equity Practice combines a deep understanding of private equity markets with world-class expertise across all major industries and functions to provide a broad range of value-adding services.With more than 80
116、consultants in 50 offices around the world, our expertise shadows the private equity life cycle from pre-deal due-diligence support to pre- and post-acquisition executive search, leadership assessment, proactive introductions, and the construction of advisory boards for both private equity firms and
117、 their portfolio companies.We pride ourselves on our work with private equitybacked portfolio companies to secure the leadership needed to deliver on tomorrows strategies. Our consulting services enable us to develop long-term strategic partnerships that build winning leadership teams and create sub
118、stantial value.In addition, we are the leader in finding top private equity management talent by recruiting investment professionals, operating partners, and other essential senior managers who support financial growth.GlobalTodd Monti New York Jonathan Goldstein New York Will Moynahan London AmericasEurope and Africa
