Private equity, venture capital executives expect salary increases despite US-China trade war, uncertain economic outlook

Nearly two-thirds of private equity and venture capital executives in Asia expect to receive salary increases in the next 12 months despite potential “rougher seas” in the industry because of the US-China trade war and a slowing global economy, according to a new survey by Heidrick & Struggles.

Only 1 per cent of those surveyed in the region expect to see pay cuts in the coming year, according to the executive search and consulting firm.

Hiring also remains robust by private equity and venture capital firms in Asia-Pacific, and there is increasing demand for investment professionals by new funds, as well as pensions, sovereign wealth funds and family offices, Heidrick & Struggles said.

“You continue to have new pools of capital come in. You used to have pension funds and big pools of capital in the US and Europe that were investing in fund of funds type strategies or doing it from afar,” Michael Di Cicco, head of investment management, Asia and the Middle East, at Heidrick & Struggles, said. “Those that are of scale are building out offices here – whether that’s a pension fund form North America or something in Asia. You just have more money that needs to be invested.”

Di Cicco said the industry is moving to more specialisation, whether that is industry or local focus. The industry also is increasing its hiring on the ground in Southeast Asia, but Hong Kong continues to have a strong centre of gravity for investing in the region, particularly in mainland China.