Thelander IF Digest: June 2023

Venture Capital vs. Private Equity: How Does Firm Type Impact Compensation?

In June’s Thelander Digest, we compare managing general partner compensation at venture capital firms to private equity firms. Let’s take a look at the data!

About the data:

• We looked at the MEDIAN total cash and carried interest for a managing general partner with less than $1 Billion in total AUM at Venture and Private Equity firms. We chose to focus on managing general partners, as this is the most senior job for investment professionals.
• The graph shows how the median total cash and carried interest have changed year-over-year in venture capital and private equity. 

Thelander Data Shows: 

• Since 2021, the median total cash for managing general partners at venture capital firms has slightly declined from $420,000 to $415,000, but the carried interest has increased from 25.02% to 30.00%.
• At private equity firms, the median total cash is higher during this timeframe compared to venture capital firms. It was at $500,000 in 2023, which was down $25,000 from 2021. The carried interest percentage has remained stable at 30.00%.

The second graph shows us a snapshot of the median, 75th, and maximum total cash and carried interest for managing general partners at venture capital and private equity firms. Thelander data shows that regardless of firm type, compensation is much higher. Here, we see it starting at $1,200,000.

After examining the Thelander data above, our main takeaway was that the type of firm makes less of a difference in compensation than the total assets under management does.

The Thelander Platform allows you to customize by total assets under management all the way up to $7 Billion+.

Participate In The Investment Firm Compensation Survey