European buyout firms increase salaries despite downturn

The increase in salaries underscores how financially rewarding the industry’s business model can be given firms lock up investors’ cash for at least a decade

European private equity firms increased pay for staff this year, underlining the resilience of the industry’s lucrative business model in the face of the toughest market conditions in more than a decade.

Salaries rose by at least 6 per cent across the ranks of employees, according to an annual survey by headhunter Heidrick & Struggles.