Salary growth for professionals in the European private capital market remains subdued.
Some 38 percent of employees saw no increase – or even a decrease – in their base pay over the past year, according to the Europe Private Capital Compensation Survey 2025, a study among 302 professionals conducted by executive search and leadership advisory firm Heidrick & Struggles.
Despite the modest salary developments, many professionals were partly compensated through variable pay. Sixty percent of respondents reported receiving a higher bonus than in 2024, broadly in line with the previous year, when 63 percent reported a salary increase and 55 percent saw their bonuses rise.
According to Uroš Zver, partner in the Technology & Services practice at Heidrick & Struggles Benelux, the market experienced “more of the same.” Challenging market conditions have limited value growth at private equity-backed companies, while longer holding periods have shifted the focus toward operational performance.
Senior talent in demand, fewer junior hires
Survey respondents were grouped into three levels: managing partner, partner, and principal. Managing partners earned an average of 797,700 euros in 2025, up four percent compared with 2023.
Partners saw their compensation rise by an average of six percent over three years to 778,600 euros, while principals earned 364,300 euros on average, a 6.4 percent increase from 2023.
Changing market dynamics are also reshaping team structures. Whereas fundraising was a key priority in 2024, the focus has now shifted toward deploying capital and improving portfolio performance.
As a result, experienced senior professionals are in high demand, while technological advances are slowing the intake of junior talent. According to Zver, the traditional pyramid-shaped workforce is gradually becoming more “top heavy.”
UK salaries lead, German bonuses stand out
Across Europe, private capital professionals in the United Kingdom receive the highest salaries and bonuses on average. Managing partners are the exception: in Germany, they received average bonuses of more than 1.5 million euros in 2025 – more than double the 678,900 euros paid to their UK counterparts.
French professionals were most likely to face bonus reductions, with 17 percent reporting a cut. The share was significantly lower in the United Kingdom (6 percent), Germany (8 percent), and the rest of Europe (8 percent).
Looking ahead, Zver expects deal activity to remain strong. As more capital becomes available, 2026 could see a wave of private equity-backed companies coming to market, a development driven in part by investors seeking to realize returns.
