The squeeze on middle management compensation and recruitment in the European private equity real estate industry is easing, but bonuses are lighter across the board this year, new research from executive search firm Bohill Partners shows.

The squeeze on middle management compensation and recruitment in the European private equity real estate industry is easing, but bonuses are lighter across the board this year, new research from executive search firm Bohill Partners shows.

The Bohill Partners research showed that salary levels in the private equity real estate industry in France and Germany are broadly comparable to the large and competitive London market, although on a euro/sterling 1:1 equivalent basis and with wide regional differences. In larger private equity real estate firms in Continental Europe, where managing directors often have broader roles including managing office operations, basic salaries can be well over the EUR 300,000- mark.

There is increasing interest in the Nordic markets and this is expected to be reflected in longer-term upward pressure on salaries. In the troubled southern economies of the eurozone, salaries for junior positions in particular are under strain, but the scarcity of top talent in smaller markets such as Spain and Italy means that experienced senior directors can continue to command commensurate compensation packages.

Thomas Hughes, senior consultant at Bohill, said the aftermath of the financial crisis has also boosted demand for asset management professionals with expertise in refinancing, portfolio repositioning, and hands-on property management experience to retain and attract tenants, as well as handle distressed situations. Those individuals who can combine financial acumen and knowledge of bricks and mortar are being paid premiums.

Bohill Partners specialises in real estate and infrastructure executive search and has offices in London and Munich.