PRINCIPAL COMPENSATION IN MASSACHUSETTS PE FIRMS

We gathered insights from 50 Principals working in Private Equity firms across Massachusetts. The report breaks down compensation based on firm AUM.

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RESPONDENT BREAKDOWN

• 6% from firms under $500M AUM

• 35% from firms with $500M–$5B AUM

• 59% from firms over $5B AUM

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BASE SALARY

Firms < $500M AUM

• Median: $177,500

• Range: $150,000 – $185,000

Firms $500M–$5B AUM

• Median: $212,000

• Range: $170,000 – $300,000

Firms > $5B AUM

• Median: $494,250

• Range: $250,000 – $850,000

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BONUS

• 0% of Principals at firms <$500M receive a bonus of 50% or less

• 33% at firms $500M–$5B receive a bonus of 50% or less

• 15% at firms >$5B receive a bonus of 50% or less

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EQUITY

• 100% of Principals at all AUM levels receive carry or partner share

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KEY TAKEAWAYS

• Compensation increases significantly with AUM—median salary jumps from $177,500 to $494,250 from the smallest to the largest funds.

• Carry is universal across all firm sizes, but bonus structure becomes more aggressive in larger funds.

• At firms >$5B, 85% of Principals receive bonuses above 50%—clearly performance is heavily rewarded at scale.

• Top-end total cash comp exceeds $850,000, driven by both high base and generous incentives.

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