2008 Hedge Fund Compensation Report Released; Competition for Hires Drives Pay Increase

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$1795 Report analyzes base salaries and bonuses of thousands of hedge fund professionals at hundreds of hedge fund firms for the years 2004-2007, including analysis by fund size. The data shows base salaries for all titles and job functions have increased in the single digits. 2007 cash bonuses show a substantially lower increase than what was predicted before the credit crunch this summer. Exclusive commentary on non-monetary compensation included in report. Published jointly by Institutional Investor News, Glocap, and Lipper Hedgeworld.

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As we are every year, Glocap is once again happy to be a part of what has become an established compensation planning tool for hedge funds of all sizes

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Glocap Search LLC, Institutional Investor News, and Lipper HedgeWorld today released the 2008 Hedge Fund Compensation Report - an in-depth analysis of 2007 compensation paid by U.S. hedge funds including estimates for cash bonuses expected to be paid in early 2008. The data shows that compensation for all titles and job functions covered by the report continues to increase.

Adam Zoia, Managing Partner at Glocap, noted that, as hedge funds continue to attract capital at rapid rates and the markets have become more competitive, there has been a heightened need for more qualified professionals to help invest the money, and that demand has pushed compensation higher at any given level of fund performance.

The $1795 Report analyzes base salaries and bonuses of thousands of hedge fund professionals at hundreds of U.S. hedge fund firms for the years 2004-2007, including Investment Professionals, Traders, CFOs, COOs, Fund Marketers, Administrative & Executive Assistants, Information Technology, Risk Management, Operations and Legal & Compliance professionals. The data in the Report comes from a combination of first-hand feedback from Glocap candidates on past and expected compensation, actual placement data maintained by Glocap in the course of its search business and from survey results by its recruiters.

Zoia added that the 2008 report was improved to reflect the changing landscape of the hedge fund industry. Specifically, fund sizes were altered to include even larger funds and compensation data was added on fund of funds. "As we are every year, Glocap is once again happy to be a part of what has become an established compensation planning tool for hedge funds of all sizes," Zoia said.

To order the report please visit:
https://www.glocapsearch.com/publications.jsp?_page=detail&itemcode=2008HFCR

Among many other things, the 2008 Report shows that:

  • On average, 2007 base salaries for all investment professionals and traders (regardless of fund size or performance) experienced single-digit increases.
  • Estimates are for 2007 cash bonuses for investment professionals to increase anywhere from 1-9% over 2006 levels--a substantially lower increase than what we were predicting before the credit crunch this summer.
  • Average total compensation for investment professionals with 1-4 years of experience at funds with $1-3 billion in assets under management is estimated to come in at just over $330,000.
  • Average total compensation for investment professionals with 10 or more years of experience at hedge funds with $10 billion or more in assets under management (a new category this year and the largest in the report) is estimated to hit $2.35 million this year.
  • Fundraisers will earn average pay packages of about $730,000 this year.
  • Total cash compensation for Senior Analysts at fund of funds is expected to hit $325,000.

To order then report please visit:
https://www.glocapsearch.com/publications.jsp?_page=detail&itemcode=2008HFCR

A special commentary on non-monetary compensation is included in the Report.

About Institutional Investor News
Institutional Investor News (http://www.institutionalinvestor.com), a division of Institutional Investor, Inc., has more than 30 years' experience as the most reliable source of exclusive, breaking investment and financial news read by the top decision makers on Wall Street. II News publishes 18 newsletters, including Alternative Investment News, as well as iisearches.com, the world's number one sales and marketing tool for investment managers. Contact: Brian McTigue (212-224-3522)

About Glocap Search
Glocap Search (http://www.glocap.com), is a leading retained executive search firm focused on alternative asset management and has a global practice placing investment professionals at all levels and across all functions into hedge funds, private equity firms, asset management firms and fund of funds. Contact: Aaron Finkel (646-356-6465)

About LIpper Hedgeworld
Lipper HedgeWorld is the leading information portal for the global hedge fund community and offers its members access to unparalleled content in print and electronic formats, including industry news, research and events. Lipper HedgeWorld's community consists of more than 55,000 registered members in 125 countries. As an exclusive
distributor of the LipperTASS database, Lipper HedgeWorld provides institutional quality hedge fund research to institutional investors, financial advisers, high net worth investors, hedge fund managers, and secondarily, to service providers, academia, and media. Contact: Sandra Lee (646-223-4152)

To order the report please visit:
https://www.glocapsearch.com/publications.jsp?_page=detail&itemcode=2008HFCR
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