From the category archives:

Compensation

Capital Gains Taxes: A $0.9 Billion Increase on Private Equity

October 22, 2012

Capital gains taxes are set to rise come January 1st, with the capital gains tax rate rising from anywhere between 9 percent if you’re in the current 33 percent bracket to 50 percent if you’re in the lowest bracket. The capital gains tax rate is set to increase by 13 percent if you’re in the […]

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Private Equity & VC Compensation Survey Gathers Industry Benchmarks

November 7, 2011

The fifth annual Private Equity Compensation Survey is live and is collecting data on venture capital and private equity compensation practices. The online survey makes it easy for investment professionals to directly provide valuable insights into compensation and eligible participants who complete the survey will receive the final 2012 Private Equity Compensation Report (a $347 […]

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Private Equity Compensation Unlikely to Change with Cost Cutting

September 26, 2011

News of layoffs at major financial institutions has dominated the headlines for the past few weeks. But despite the lower headcount and reduced expenses, it doesn’t necessarily mean that bonuses or compensation will change for those private equity jobs and bankers still employed, reports The Deal. Companies that free up cash with layoffs tend to […]

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Pay Curbs to Hit Private Equity Jobs in Europe

August 1, 2011

Private Equity managers and other asset managers who thought they might avoid a European clampdown on compensation are now facing tighter restrictions on how and when bonuses are paid and disclosure, reports Reuters. A new consultation paper on the Alternative Investment Fund Managers Directive (AIFMD) proposes extending the reach of regulators and Europe’s Capital Requirements […]

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Time for a New Private Equity Compensation Structure

April 25, 2011

The old model for private equity bonuses is broken and we need to find a new model argues Mike Fell, in a recent guest post online for The Financial Times. Fell, a partner at independent private equity firm, Key Capital Partners, in the UK, feels that the traditional compensation model of the past 20-30 years […]

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Higher Private Equity Compensation in Asia?

April 11, 2011

Hot growth in Asian markets has allowed Asian private equity funds to escape the downward pressure on management fees and private equity compensation felt by their U.S. and European peers, reports Reuters. A new survey by Hong Kong-based Squadron Capitals reveals that a rising demand to invest in Asia, coupled with a limited supply of […]

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Private Equity Compensation Report Shows Big Increases

December 15, 2010

The 2011 Private Equity Compensation Report revealed positive momentum in the area of private equity and VC compensation. At the end of 2010, 45 percent of private equity career professionals expect their compensation to grow by double-digits over last year. The average increase was 13 percent during a time when the number of deals getting […]

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Good News, Bad News for Private Equity Compensation

May 24, 2010

Private equity and venture capitals firms appear to have dodged one bullet this past week, while being winged by another. The final versions of the House and Senate financial reform bills both exempt private equity and venture capital firms from having to register with the Securities and Exchange Commission. This will help them avoid the […]

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Carried Interest and Private Equity Jobs

March 1, 2010

What is carried interest? And who earns it? Carried interest, also known as “incentive allocation” or simply “carry,” is the percentage of fund profits charged to the investors as an incentive fee (on top of management fees). Carried interest is the proverbial “carrot” that keeps PE fund general partners striving for better performance. Most funds […]

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Changes Needed for Venture Capital Compensation

November 23, 2009

No less than the president and the CEO of the noted Kaufman Foundation, the $1.8 billion endowment fund that promotes entrepreneurship, are saying that the current venture capital compensation model is broken. In an article in Business Week, Carl Schramm and Harold Bradley say the prominence of American venture capital has taken a tumble from […]

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