Compensation for those working in Asia's $139 billion sector is rising, and reaching global norms, a survey finds.

Compensation paid to professionals in Asia’s private equity industry is rising to match global levels, putting the region in a stronger position to attract talent at the expense of rivals, according to a survey by a headhunter firm.

With pay levels always a big theme in the financial services industry – and certainly including wealth management – the figures from the 2015–16 Heidrick & Struggles’ Asia Pacific Private Equity Compensation Survey, obtained in November and December last year and drawn from more than 200 people, may pique interest.

The survey shows that 62 per cent of respondents expect a rise in base salary in 2016, against 47 per cent of those reporting an actual rise in base salary last year. Some 45 per cent expected to get a rise in bonus for 2015, with 42 per cent expecting no change and 13 per cent predicting a drop.

In 2015, the compound annual growth rate in total compensation for associates and senior associates was 17.7 per cent; for vice presidents/principals and directors, it was 9.31 per cent; for partners/managing partners and managing directors, it was 6.74 per cent, the survey found.

The trend comes at a time when global and regional fund managers are continuing to expand their office networks across Asia-Pacific, the report said.

The report noted that compensation levels are uneven. Out of those responding to the survey, those based in mainland China reported the highest total compensation compared to their peers elsewhere in the region. 

“In our own recruitment work, we have found that professionals with a strong track record of investing in China can command higher salaries than those elsewhere in the region. Australia followed closely behind China. Furthermore, regional hubs Hong Kong and Singapore reported similar compensation levels. This is a shift from our previous surveys, where professionals in Singapore reported lower compensation than those in Hong Kong,” it said.

In 2015, private equity investment in the region topped $139 billion (source: Asian Venture Capital Journal), which is the highest ever total and up markedly from the $92.5 billion in 2014. 

“We continue to see sustained demand for experienced talent across investment, value creation and firm-level operations and finance professionals,” the report said.

This is the third year in a row that Heidrick & Struggles conducted its APAC PE compensation survey.