Despite global uncertainties, India continues to attract talent and investment in private capital markets, says a report by Heidrick & Struggles, a global executive search and leadership advisory solutions firm.
“Firms that focus on developing a culture of adaptability and innovation will remain ahead of the curve,” is the statement made by Ritu Khandelia, partner of financial services practice and private-equity practice in Mumbai, Heidrick & Struggles.
As per the report titled 2024 Asia Pacific Private Capital Investment Professional Compensation Survey, global economic uncertainties have not much affected the private capital market across the Asia Pacific. The market sentiment is improving and growing, and India’s resilience is driving the positive outlook in the sector. No wonder it is emerging as “an opportunity-rich private capital landscape”.
“Compensation levels remain competitive, while we are seeing heightened demand for leaders who can bring a global perspective and adapt to the evolving needs of the Indian market,” according to Shadi ElFarr, regional managing partner, financial services practice for Asia Pacific and Middle East, Heidrick & Struggles.
While maximum improvement in market sentiment is seen in the Australian market, Hong Kong is in second position, followed by Singapore and India.
A significant 53 per cent of respondents in India feel sentiment is somewhat or much better compared to 30 per cent who felt this way two years ago.
Thanks to regulatory reforms, investor confidence has got a boost and there is increased domestic participation. As a result capital markets have stabilised and reduced reliance on foreign capital inflows and sensitivity to global volatility.
Hiring has been encouraging across the Asia Pacific, with 63 per cent of respondents reporting an increase in base compensation from 2023 and 50 per cent reporting a growth in bonus compensation.
Although India lags behind other Asia Pacific markets in terms of compensation, the country has witnessed significant growth across all professional levels. Associate and senior-associate levels saw a significant rise in median total cash compensation—from $90,000 in 2023 to $135,000 in 2024.
It is the robust hiring that is driving the compensation growth in Asia Pacific. There has been an upward trend in cash compensation as per the survey.
Given the significant private equity investments resulting in better compensation packages, it is hoped that India’s economic growth will continue to be strong. Competition has also gone up in this area because of the growing demand for talent in this growing market.
“As India continues to scale as a key player in APAC private capital, the importance of retaining top talent and cultivating leadership agility cannot be overstated,” according to Khandelia
The 2024 Asia Pacific Private Capital Investment Professional Compensation Survey consists of self-reported and anonymous online survey data from 140 private capital investment professionals, who provided their compensation data from 2021, 2022, and 2023 and their expectations for changes in market sentiment and compensation in 2024.