Understanding Private Equity Salary: Hourly, Weekly, and Annual Pay in the UK

Understanding Pay: Hourly, Weekly, and Annual Figures

When you look at a job advert or a salary survey, pay can be quoted in different ways: an hourly rate, a weekly wage, or an annual salary. Each format tells you something different, and knowing how to compare them is essential, especially if you are researching a private equity salary or any other role in the UK.

Hourly Statutory Rates: The Legal Minimum

The UK government sets minimum hourly rates that most workers must receive. These are updated each April. Our reference database shows the current National Living Wage for employees aged 21 and over is £12.71 per hour. For workers aged 18 to 20, the National Minimum Wage is £10.85 per hour, and for under-18s and apprentices it is £8.00 per hour. These rates are the absolute floor – no employer can pay less, regardless of the industry.

In private equity, base salaries are almost always well above these statutory minimums. However, understanding the minimum wage helps you benchmark lower-paid roles and appreciate how far above the floor a private equity salary typically sits.

Weekly and Annual Earnings: The National Picture

The Office for National Statistics (ONS) publishes the most reliable data on what people actually earn. In April 2025, median weekly earnings for full-time employees were £766.60, and median gross annual earnings were £39,039. Median hourly earnings (excluding overtime) were £19.67.

These figures are useful as a baseline. If you are considering a career in private equity, you will likely find that base salaries exceed these medians, especially for investment professionals. But remember: these ONS figures include all full-time employees across all sectors, not just finance.

Private Equity Salary: What the Surveys Say

Because private equity firms are not required to publish salary data, we rely on industry surveys. The 2025 MM&K UK/Europe Private Equity and Venture Capital Compensation Insights report found that median base salary increases across UK investment managers were 9% in 2025. This reflects strong competition for talent, even as deal activity varies.

WTW’s 2025 private equity compensation survey adds nuance: pay across investment teams largely stabilised or declined after several years of strong growth. Junior roles continued to see the strongest base salary growth, while senior positions saw more modest rises. Bonuses generally flattened or fell in the UK, except for junior roles.

Importantly, a private equity salary is rarely just a base salary. Total compensation includes an annual bonus and, for many roles, carried interest – a share of the fund’s profits. Carried interest typically amounts to around 20% of profits (rising to 30% in venture capital) and is the main long-term incentive. This means that the total pay package can be significantly higher than the base salary, but it is also more variable and depends on fund performance.

Advertised Salaries vs. Take-Home Pay

When you see an advertised salary for a private equity role, it usually refers to base pay. However, your take-home pay will be lower after deductions for income tax, National Insurance, and pension contributions. If the role includes bonus or carried interest, those are typically paid separately and may be subject to different tax rules.

It is also common for private equity firms to quote total compensation ranges in job adverts, but these can be misleading if they assume maximum bonus and carry. Always ask for the base salary and the typical bonus range, and check whether carried interest is offered and on what terms.

How to Use This Information

Whether you are negotiating an offer or planning your career, start by understanding the statutory minimums and national medians. Then look at industry-specific surveys for private equity. Remember that a private equity salary is only one part of the picture – the real value often lies in the bonus and carried interest.

For more detailed guidance on pay structures, visit our pay guides section. And to check the latest minimum wage rates, see our UK Minimum Wage page.

Key Takeaways

• Hourly minimum wage rates set a legal floor; private equity roles pay well above this.
• UK median full-time annual earnings are £39,039; private equity base salaries are typically higher.
• Private equity compensation includes base salary, bonus, and carried interest – total pay can vary greatly.
• Industry surveys show base salary increases of around 9% in 2025, but bonuses have flattened.
• Always look at the full package, not just the base salary, when evaluating a private equity role.