- Private real estate compensation increased modestly in 2026, with average median pay growth reaching 4% as fundraising conditions improved, according to Sousou Partners and PERE.
- Senior acquisitions, capital-raising, and CFO roles posted the strongest compensation figures, while firms kept base salary growth relatively restrained.
- The data signals a stabilizing CRE investment market where firms are rewarding performance and retention without fully returning to pre-downturn compensation expansion.
Private real estate compensation is starting to rebound after two cautious years, with firms selectively increasing pay as fundraising conditions improve and deal activity slowly recovers, according to Globe St. A new compensation report from executive search firm Sousou Partners and PERE shows that while salary growth remains measured, bonuses and carried interest are once again lifting total compensation across senior investment and management roles.
The shift reflects a market regaining confidence rather than entering a full-scale expansion cycle. Serene Hamzawi, managing partner at Sousou Partners, told PERE that the industry entered 2025 in “recovery mode,” with firms showing more optimism despite continued restraint around fixed compensation costs.
Fundraising Recovery Supports Compensation Growth
Improving fundraising momentum helped drive average median compensation growth of roughly 4% between 2024 and 2025, according to the Sousou Partners and PERE report published in May 2026. The gains were most pronounced in total compensation packages rather than base salaries, particularly for senior leadership positions tied directly to investment performance and capital formation.
Private equity acquisitions roles remained among the highest-paid positions in the industry. Heads of platform or regional acquisitions teams earned as much as $4.8M in total compensation, with a median of $1.85M. Managing directors with more than 15 years of experience earned up to $1.93M, while directors in the 10-to-14-year range reached as much as $1.13M.
The report also highlighted continued strength in capital-raising positions, reflecting how competitive fundraising remains across private real estate. Managing directors focused on investor relations and fundraising earned as much as $2.3M, with median compensation reaching $950K.
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CFO Roles Stand Out in Private Real Estate Compensation
Finance leadership positions posted some of the strongest salary increases in the report. CFOs of portfolio companies saw base salary growth rise 8% at the high end and 6% at the median, pushing total compensation to as much as $450K.
The gains point to growing operational complexity across private real estate portfolios as firms navigate refinancing challenges, higher borrowing costs, and asset-level performance pressures. Demand for experienced financial leadership appears to be rising even as firms remain cautious on broader hiring and salary expansion.
Asset management compensation followed a steadier trajectory. Managing directors in private equity asset management earned as much as $1.6M, with a median of $985K, while directors topped out at $1.25M. Investment management acquisitions roles generally trailed private equity acquisitions compensation but still recorded year-over-year growth.
A Cautious Rebound for CRE Investment Firms
The broader compensation trends mirror conditions across institutional commercial real estate. Transaction volumes have started recovering in select sectors, but elevated interest rates and uneven asset valuations continue to pressure underwriting and fundraising timelines. The compensation rebound also aligns with broader hiring momentum across CRE firms, where companies are gradually expanding headcount again after two years of cost-cutting and slower deal activity.
According to the report, CFO compensation posted the strongest average median growth at 7%, followed by private equity acquisitions at 4.6% and investment management at 4.5%. Capital-raising roles rose 4.25%, while asset management functions recorded more modest gains.
The data suggests firms are prioritizing incentive-based compensation structures over aggressive increases to fixed salaries. Bonuses, carried interest participation, and performance-linked compensation remain key tools for retaining senior talent without materially increasing operating expenses.
Why It Matters
Private real estate compensation trends often serve as an early indicator of institutional market sentiment. Rising bonuses and improving pay packages typically signal stronger fundraising pipelines, greater confidence in deployment activity, and expectations for improving transaction volumes.
At the same time, the restrained pace of salary growth underscores how cautious many firms remain after a prolonged period of higher interest rates and valuation uncertainty. Firms appear willing to pay for proven dealmakers and finance leaders but are avoiding the broad compensation inflation seen during the 2021 market peak.
What’s Next
Compensation growth will likely remain uneven through the rest of 2026, with fundraising-heavy and acquisitions-focused roles expected to outperform support and operational functions. If transaction activity accelerates and institutional capital flows continue improving, bonus pools and carried interest allocations could expand further by year-end.
For now, the private real estate labor market appears to be stabilizing alongside the broader investment environment: improving, but still disciplined.
