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Dollars and sense

Financial compensation is only part of what drives the next generation of private equity professionals.


Private Funds Management | December 5, 2016


The Private Funds Management article, “Dollars and sense,” quoted Russell Reynolds Associates Consultant Jeffrey Warren about what drives future generations of PE professionals. The article is excerpted below.

It seems every year another survey attempts to capture millennial attitudes towards their careers. A recent study from SAP and Oxford Economics suggests those in their 20s and early 30s are more cash-focused than often perceived: 41 percent of those surveyed said higher compensation would motivate them to stay in a job, compared with 38 percent of non-millennials.

But while compensation is important it’s clear millennials have a more nuanced view of professional success. According to a survey by Deloitte, six out of 10 of them gauge the performance of their business for non-balance sheet issues, such as employee satisfaction. So what does that mean for firms looking to woo the next generation of talent? Room for professional growth, the long-term viability of the investment strategy and a culture reflecting the candidate’s values often trumps simple compensation.

“As an industry, private equity would probably get a C or D grade as far as leadership and succession planning; junior and mid-tier talent may get good deal training but they don’t get much broader leadership training or exposure,” says Jeff Warren of the executive search firm Russell Reynolds Associates. “Many young and midlevel PE professionals want great deal and leadership training; they want senior partners willing to invest in their success since they won’t see real significant carry until subsequent funds.”

To read the rest of this article, click here.

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Dollars and sense