Excluding the impact of inflation, bonuses paid to professionals in traditional asset management firms are projected to fall by 10% to 15% by year-end 2022 compared with the prior year-end, due to assets under management and revenues falling on “market decline and moderate outflows as clients de-risk,” the report said.

For professionals at mega-size private equity firms, bonus payments should be flat compared with last year, the report said, while those employed at mid- to large-size private equity firms are likely to see their bonus payouts fall by 5% to 10%, the report noted, partly due to a “slowdown in fundraising and fewer realizations.”

Mega private equity firms are those with at least $50 billion in AUM, while midsize to large are firms with between $5 billion and $50 billion AUM, said Chris Connors, vice president at Johnson, in an email.

Pensions & Investments / May 5, 2022