How Did Private Equity Employment Compare in 2012

The numbers are in.  Among the three classifications of employment — private equity, investment banking, and the hedge fund industry — which industry would you guess performed the best among the three?

Well, overall private equity saw the largest increase in employment, growing by about 1k over their 2011 tally.  In contrast, hedge fund and investment banking industry employment was relatively flat from the prior year, making the private equity industry’s win not incredibly impressive, although, it does point to the continued strength of the industry (at least in terms of investors’ trust in the industry’s ability to beat market returns).

With the generally ho-hum 2012 employment figures in, what does it portend for the financial industry’s 2013?  Well, that’s where it appears to get better.

Every year for the past six years, JobSearchDigest.com has been surveying insiders of their employment and compensation expectations for the coming year.  Overall, the future look bright.  Here are some of the highlights from this year’s report:

• The annual average compensation for private equity and VC professionals increased 16 percent to $273,000 USD.
• Bonuses comprised 36 percent of this year’s compensation.
• 46 percent of professions expected at least double digit increases in 2012, while 30 percent expected no increase.
• MBA’s earned a 12 percent higher base salary on average, but earned lower bonuses than those without an the degree.
• The demand for investment professionals has strengthened in the last year. 59 percent of firms indicated hiring intentions, whereas last year only 1 in 3 firms were optimistic about bringing in new staff in this area.
• Training remains an area for improvement for most firms, with respondents indicating satisfaction with their firm’s training programs actually declining from last year’s already low levels.

So, with an increase from 33 percent to 59 percent of firms likely to accelerate hiring throughout this year, the private equity and other financial industry sectors appear to be turning the corner on the worst financial industry recession since the Great Depression.  The long awaited race for talent is back on (although it never really disappeared).