Africa’s venture capital (VC) and private equity (PE) ecosystems are evolving rapidly, yet a persistent lack of transparency has left professionals and firms without clear benchmarks for compensation and career progression.
DreamVC, a leading voice in the continent’s investment community, has taken a significant step toward bridging this gap with its latest report on pre-partner roles.
Drawing from over 200 data entries, the report shines a light on salaries, gender dynamics, remote work trends, and more.
Below, we dive into the key findings and their implications for Africa’s investment future after our interview with DreamVC co-founder Mark Kleyner.
Why Pre-Partner Roles Matter
DreamVC’s decision to focus on pre-partner roles stems from a clear need: this is where the transparency deficit is most acute. Analysts, Associates, and Investment Managers—positions occupied by many of DreamVC’s alumni and the broader A&A Collective community—often lack reliable data to guide salary negotiations.
By providing detailed benchmarks, the report empowers both employees and employers to make informed decisions.
Looking ahead, DreamVC has its sights set on partner-level compensation for future editions. While gathering such data is complex due to the hierarchical nature of firms, growing participation and strong ties with Africa’s fund managers and limited partners signal a promising expansion of coverage in the years to come.
Gender Progress and Persistent Barriers
One of the report’s standout statistics is the gender split: 43% of respondents are female, a promising figure for an industry historically dominated by men. Yet, women remain underrepresented in senior roles.
The barriers are multifaceted—historical low participation has left a legacy of male-dominated leadership, while structural biases and limited access to capital networks compound the challenge.
Fundraising, already a hurdle in Africa’s perceived high-risk market, can be even tougher for women without established connections. Despite these obstacles, momentum is building.
DreamVC’s programs, such as Launch into Venture Capital and Investor Accelerator, now boast nearly 50% female participation annually, while initiatives like Kuramo’s Moremi Accelerator and 2X Ignite’s GP Sprint are equipping women to lead their own funds.
The pipeline is strengthening, and greater parity at the top feels increasingly within reach.
The Salary Gap: Talent Drain or Market Reality?
A striking finding is the significant salary disparity for professionals working outside Africa. Investment Managers, for instance, earn $40,000 more abroad—a gap driven by higher costs of living, fiercer competition, and larger assets under management (AUM) in global hubs.
While purchasing power parity softens direct comparisons, the risk of talent drain is real. DreamVC alumni and other skilled professionals are lured abroad by better pay and stability, posing a challenge for African funds.
The solution lies in growth: as capital inflows rise and local funds scale, salaries should edge closer to global norms, incentivizing talent to stay and build within the continent.
Carry: A Rarity in African Funds
Performance-based upside, or “carry,” remains elusive even for senior roles in African funds. This scarcity reflects the ecosystem’s youth—many firms are still refining incentive structures and balancing sustainability with long-term rewards.
Personal preferences also play a role; some professionals favor immediate salary boosts over uncertain payouts tied to decade-long fund cycles.
Fund dynamics, such as crowded partner allocations or turnover concerns, further limit carry’s prevalence. As exits become more frequent and the market matures, DreamVC anticipates a shift toward more standardized carry offerings, aligning African funds with global practices.
Remote Work: A Lasting Trend?
Fully remote work peaks at 26% in the report, a notable shift fueled by smaller, multi-market funds and the rise of digital deal-making. While this flexibility suits newer firms, larger funds with deep local ties still prioritize in-person engagement.
Hybrid models are emerging as a middle ground, balancing collaboration with adaptability. Remote work is here to stay, particularly among agile, early-stage funds, but its dominance will hinge on firm culture and scale.
Early Reactions: A Tool for Change
DreamVC’s transparency push is already resonating. Over 36 fund managers have expressed enthusiasm for using the report to benchmark salaries and align compensation with market norms—some even leveraging it to justify fund sizes to prospective limited partners (LPs).
HR professionals, though yet to weigh in fully, are expected to find the data invaluable for candidate negotiations. As adoption grows, the report could become a cornerstone for competitive hiring and retention strategies across the continent.
Impact Investing: Small but Growing
Impact investing funds in the report show a median AUM of $56 million—modest compared to traditional VC and PE. This reflects the sector’s nascent stage and its reliance on blended capital from commercial and non-commercial sources.
While development projects have long thrived in Africa, competitive impact investing, balancing profit with purpose, is still finding its footing. As investor appetite for dual returns grows, capital inflows should accelerate, signaling a maturing market.
The Stat That Could Transform the Ecosystem
For DreamVC, one finding stands out as a catalyst for change: the clear salary progression tied to promotions. From Analyst to Associate to Investment Manager, each step brings a meaningful pay bump—a roadmap for professionals and firms alike.
Beyond this, the report’s very existence is a milestone, filling a void left by global studies that often overlook Africa. With over 200 entries, it offers a robust reference point for building competitive compensation packages that retain top talent.
A personal highlight for DreamVC is the education insight: 60% of surveyed investors completed their education locally, debunking the myth that international degrees are a prerequisite for success. This underscores the depth of homegrown talent and challenges firms to value local expertise equally.
As Africa’s investment ecosystem evolves, DreamVC hopes this data inspires a broader recognition of the continent’s capable, locally trained professionals.
Looking Ahead
DreamVC’s report is more than a snapshot—it’s a call to action. By illuminating salaries, gender dynamics, and work trends, it equips Africa’s investment community to address disparities, retain talent, and foster growth.
For funds seeking to train their teams or professionals aiming to thrive, DreamVC stands ready to lead the charge. As the continent’s VC and PE sectors mature, this transparency could be the spark that propels them to new heights.
