Top female executives at private equity and hedge fund firms received just 7% (£366m) of the total £5.4bn in profit-share awards – known as carried interest – paid out in 2025, according to HMRC figures analysed by accounting firm Lubbock Fine.
While the data shows that women made up 20% of all recipients, accounting for 740 of the 3,890 individuals who received carried interest, female executives received an average payout of £495k, compared with £1.6m for male executives.
It comes as the total value of carried interest awards paid to all executives grew 52% from £3.5bn in the previous year.
Executives paid £1.5bn in tax on carried interest gains over the year, bringing total tax payments from the sector to £5.7bn over the past five years.
David Portman, tax partner at Lubbock Fine, said: “That increase in gains is usefully timed as they have just escaped an increase in tax on carried interest from 28% to an effective rate of 32% from the following year.
“Some private equity funds or hedge funds could have crystallised gains early so as to book profits before the increase in the tax. For the sale of a private equity-owned business that is harder to do.”
He added: “The amount of tax paid by private equity firms and hedge funds on carried interest highlights the importance of this industry to HM Treasury.”
