Employment in the Private Equity Real Estate Industry

by Sam Meakin

  • 05 Nov 2010
  • RE

The total number of active private equity real estate fund managers is just under 700. When private equity real estate firms that do not raise distinct private equity real estate funds (i.e. those that manage corporate or personal capital and those that manage third-party capital without pooling into commingled private investment vehicles) are included, the figure is closer to 1,000. In total, these firms employ an estimated 12,000 people. It is important to note that our estimate here constitutes the “core” of the industry, taking into consideration firms managing capital committed by institutional and other large investors. Beneath this lies a further tranche of smaller firms that invest lesser sums of capital, raising money from private sources such as friends and family.

Of the estimated 12,000 employees in private equity real estate globally, the majority (around 60%) work for firms headquartered in the US, home to many of the largest and most established firms active in the sector. Approximately 11% work for firms headquartered in the UK, 3% are employed by firms based in France, with Australia, Hong Kong, India and Singapore-headquartered firms each employing 3% of all private equity real estate employees.  The number of staff employed by a private equity real estate firm varies significantly with assets under management. Firms with less than $250 million in assets under management have an average of 16.7 employees, while firms with $10 billion or more in total assets employ an average of 127.5 people.

More information on private equity real estate employment and private equity real estate compensation is available in the 2010 Preqin Private Equity Real Estate Compensation and Employment Review.

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