Key facts
- Private equity firms are actively seeking general counsel and compliance officers due to industry expansion.
- Compensation for general counsel at private equity firms increases substantially with assets under management.
- General counsel at firms with over $10 billion in assets under management can earn a median of $1.19 million annually, with an expected carry value of $9 million.
- Many general counsel also serve as Chief Compliance Officer and Corporate Secretary.
- BarkerGilmore's report provides compensation benchmarks to aid in talent acquisition and retention within the private equity legal sector.
The private equity industry's continued expansion is fueling a robust demand for in-house legal and compliance professionals, according to a report by legal search firm BarkerGilmore. This heightened demand is directly impacting compensation and the scope of responsibilities for general counsel (GCs) and other legal leaders within private equity firms and their portfolio companies.
The BarkerGilmore 2023 Private Equity and Portfolio Company In-House Counsel Compensation Report indicates a significant increase in compensation and carry eligibility once a private equity firm's assets under management (AUM) surpass $1 billion. For funds with less than $1 billion in AUM, GCs receive a median annual compensation of $360,000, with 20% eligible for carry, averaging an expected $1 million. As AUM grows to between $1 billion and $9 billion, median compensation rises to $625,000, with 81% of GCs eligible for carry and an expected carry value of $3 million.
At the highest tier, funds exceeding $10 billion in AUM, GCs command a median annual compensation of $1.19 million, with 90% eligible for carry and an expected carry value of $9 million. Beyond core legal duties, the report highlights that a majority of GCs in private equity firms also serve as Chief Compliance Officer (85%) and Corporate Secretary (44%). Similarly, GCs at portfolio companies frequently hold the roles of Corporate Secretary (72%) and Chief Compliance Officer (53%).
BarkerGilmore developed the report to enable legal professionals to compare pay with peers and to assist legal leaders and HR departments in attracting and retaining top talent. The findings are based on an online survey conducted in March, assessing 2022 compensation trends among over 400 private equity in-house counsel across various seniority levels and organization sizes in the U.S. Bob Barker, managing partner, emphasized the critical need for accurate compensation data to drive performance and value creation.