Alt Investments
Compensation For Asia's Private Capital Professionals Decelerates - Study

Compensation in the world of private capital in Asia has hit a speed bump, suggesting the pace of growth in this sector has slowed, at least for the time being.
The years of steady pay rises for private capital professionals
in Asia may be hitting a wall, according to a compensation survey
of the sector by executive search and consultancy firm Heidrick &
Struggles.
In the fourth annual edition of the Asia Pacific Private Capital
Compensation Survey, the firm says the trend of rising
compensation slowed last year, while the number of investors
reporting increases in their base salary and
anticipating increases in their bonus fell compared to
previous surveys.
Almost two-thirds of the 210 respondents said there was no change
to their base salary in 2016 and only 38 per cent expected their
2016 bonus to increase over the prior year. In last year's
survey, nearly half of respondents said they received an increase
in base salary and 45 per cent anticipated a higher 2015
bonus.
The climate has cooled for people working in private capital
markets, the authors of the report said. The area of private
capital (private equity, debt, infrastructure and real estate)
has been busy in recent years, because the promised superior
returns to compensate for less liquidity have attracted
investors
"It was a challenging year in 2016 for private markets investing
in Asia Pacific, and that's going to affect compensation growth,"
said Michael Di Cicco, partner, head of APAC private equity
and real estate at Heidrick & Struggles. "Asking prices are
high and competition is tough. Investments and exits were down
both in terms of the number of deals and the overall value."
Investments in the region were $120.4 billion in 2016, down
from $142.9 billion in 2015, according to Asian Venture
Capital Journal. While investments continue to be considered
strong, a small number of mega investments accounted for nearly
30 per cent of the 2016 total.
Compared with other Asia-Pacific countries, China reported the
highest compensation including anticipated bonuses due to the
aggressive competition for top professionals and premium on
investment in talent.
Private capital professionals located in China and Hong Kong
received the highest total compensation across the region, with a
mean salary base of $325,890 and mean bonus of $343,050, while
professionals located in India received only 44 per cent of their
China-based counterparts' compensation.
This year's survey includes compensation data from 2016, 2015,
and 2014 as well as expected compensation development in 2017.
The report evaluates trends in compensation packages, including
base salary, bonus, and carried interest plans. Additionally,
increased demand for venture capital investment professionals,
particularly in Southeast Asia and Greater China, prompted an
additional category for venture capital funds for the first time
in this year's survey.