From great to small, firms allocate lion’s share of carry to partners

You can’t blame small private equity shops for paying less in salary and bonus than the big ones. They simply don’t bring in the same level of management and portfolio-company fees. They can’t support comparable payrolls.

So they make up for it by being more generous when it comes to allocating carried interest, right? Well, not so much, according to the 2019 Carried Interest and Compensation Survey, now in its 12th edition and published by PE Professional.

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When opportunity knocks, ‘always be open-minded’: Chris Magill, founder, Alternative Investment Staffing

After a few years on the job, you may feel that considering options outside your firm is akin to “cheating on a significant other,” said Chris Magill, founder of executive recruitment firm Alternative Investment Staffing LLC.

But “always be open-minded,” advised Magill, and don’t be afraid to network with an eye toward career advancement. If a recruiter sends you a personal message–and not a mass mailing that looks like it went to 20,000 people–take the call. “Ninety percent of candidates I place told me they weren’t looking when I [first] talked to them,” said Magill (pictured).

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José Miguel Guzmán has seen PE from both sides now

In his early career José Miguel Guzmán has worked in positions at one of the largest PE shops in the world, and one of the largest pensions–putting him in a unique position to compare and contrast the experiences.

From 2013 to 2016 Guzmán served as an associate at New York, New York-based Cerberus Capital Management. Then, from 2016 through earlier this year, he served as a private equity investment officer for the New York City Employees’ Retirement System. I caught up with Guzmán this week to get his insights into the advantages and disadvantages of working for GPs and LPs. Below is a record of our conversation, edited for length and clarity.

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Private equity makes headway hiring more women; but much work remains, especially at senior levels

Women make up about one in five employees at private equity firms around the world–far from parity but still an improvement over two years ago when data providerPreqin last studied the question. At senior levels, women make up barely more than one in 10.

According to a fact sheet released in advance of its full report, Women in Alternative Assets 2020, Preqin found that in the two years since its 2017 study, the percentage of women in private equity has grown to 19.4 percent, up from 17.9 percent–see chart above.

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