As we have previously noted, buyside jobs no longer occupy a position at the apex of the financial services professions. Now, a disturbing report confirms suspicions that pay at the largest and most prestigious private equity funds is slowly diminishing.

The latest report on private equity pay from Glocap suggests that associates at private equity funds managing more than $5bn are now earning $201k, down 5% on last year. This is comprised of a base salary of $98k and a $103k bonus.

VPs at similar funds have also had a 5% pay cut. Glocap says they’re now earning an average of $424k, comprised of a $188k base and $236k in bonus.

The figures are mostly derived from US private equity funds. But Glocap CEO Brian Korb says they apply equally to large US funds operating in Europe.

If this is the case, private equity funds don’t look particularly appealing, particularly in light of salary increases at investment banks, which have left associates receiving as much as 80k in salary alone.

However, one London private equity headhunter assures us that it’s not that bad. David Howell, chief executive of recruitment firm EM Group, says base salaries for associates at large UK private equity funds are closer to 80k and that bonuses typically range from 75-150% of this.

Contrary to our previous article, Howell is also adamant that junior investment bankers do still want to work in private equity: “We can talk to any investment banker and if we say “private equity” or “buyside,” they’ll say, “where do I sign?” he says.

Bankers’ enthusiasm for PE is apparently linked to the possibility of earning healthy amounts of carried interest from funds invested at the bottom of the market.