Chinese PE and VC Firms Slash Pay as Industry Downturn Grinds On

Last year saw the downturn in China’s PE/VC industry deepen, with total funds raised down by 15.5% and the total amount invested plunging 23.7%, industry data shows. Photo: VCG

Pay at China’s private equity (PE) and venture capital (VC) firms plunged as much as two-fifths year-on-year in 2023, a new report shows, as the industry’s downturn showed no signs of abating.

This was partly due to a decrease in annual bonuses, which fell by as much as 50% among top industry players as they slowed the pace of investments and cut costs, according to the Beijing Private Equity Association report.