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Private equity firms paying up
7 June 2007
A new salary survey suggests Gulf private equity funds' pay is comparable with, if not better than, their counterparts in the West.
An associate working in the Middle East can expect to take home anywhere between US$80k and US$130k a year tax free, plus a 50% to 100% bonus, according to London-based recruitment firm EM Financial Services. This compares favourably to salaries of between €70k and €105k (US$94k and US$141k) and similar bonuses in Germany.
Only the UK tops Middle East private equity pay, with associate salaries in London between £60k and £90k (US$118k and US$178k) and bonuses between 60% and 100%.
Private equity funds such as Advent and Carlyle are already operating in the Middle East and others are moving into take advantage of the flow of investment in the region, with local governments expected to pour US$200bn into new infrastructure projects.
Since there is strong demand but a limited quantity of local talent, many regional institutions are targeting Western talent to bring core experience from a regulated environment amid fierce competition for business.
About 40% of the candidates placed by EM have been from outside the Middle East and North Africa region.
James Mackenzie, chief executive of Mackenzie Executive Search, says a healthy growth is being witnessed in the private equity business in Dubai, but he "doubts" whether pay packages are currently more than the West.
However, Mackenzie does agree that pay packages are rising faster than in the West, citing the region's stronger growth potential.
Private equity pay in Dubai
Analyst: salary $40k to $100k, bonus 30% to 80%
Associate: salary $80k to $120k, bonus 40% to 100% + carried interest
Vice president: salary $120k to $200k, bonus 80% to 120% + carried interest
Director: salary $150k to $250k, bonus 70% to 150% + carried interest
Managing director: salary $200k to $500k, bonus 100% to 200% + carried interest
• Source: EM Financial Services
During my stay in Dubai for 30 days, my study is that at present the best investment would be in the real estate industry, whereas the secondary option is Rental business. A proportion of 25% capital can be placed in the International Funds and fiduiary schemes. Car rental is also a growing business field.
Anonymous 08 Jun 2007
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