Partners in private equity firms worldwide have seen their compensation levels fall in the past 12 months as distributions of carried interest – the share of profits from investments paid to employees once a certain level of return has been achieved – have fallen significantly with the scarcity of exits, industry analysts believe.

Private equity professionals, particularly in the higher echelons of a firm, traditionally rely on carry to supplement their salaries. But in order for carry to be paid out, a return "hurdle" has to be achieved. With firms struggling to sell businesses in their portfolios to generate returns, the likelihood of substantial carry payments has fallen sharply.