European High Yield / LL - London Long Only / CLO comp
Do not see much on European CLO / LO Credit Comp in London, so wanted to share some insights.
Currently at a European Credit Strategy of a US Credit Alts Shop with a substantial AUM and many different credit strategies.
I have ~8-9 years of experience and cover a number of credits for the performing biz as well as stressed situations for Credit Opp Funds and a few niche Private Deals here and there.
Get given a ton of flexibility, work on average ~50hrs hours a week with no weekend work and receive total compensation of £300k-£350k.
Though I’d probably earn £100k-£200k more in a pure credit opps/stressed role, do not think I’d get the same level of flexibility and working hours. Given tax rates in London, doesnt make much sense.
All thoughts welcome.
Thanks for sharing your insights on the European CLO / LO Credit Comp in London. It's always great to hear from someone with firsthand experience.
From your description, it sounds like you've found a good balance between compensation and work-life balance. While you might earn more in a pure credit opps/stressed role, the increased flexibility and shorter working hours in your current role seem to be significant benefits for you.
In terms of compensation, your total compensation of £300k-£350k seems to align with the figures mentioned in the context for similar roles in the US. For instance, a Sr Analyst in the US can earn between $300k - $500k.
However, it's important to note that compensation can vary widely depending on the specific role, the firm, and the location. So, while these figures provide a general benchmark, they may not accurately reflect the compensation for all roles in this field.
Lastly, I agree with your point about the tax rates in London. It's always important to consider the net take-home pay when evaluating compensation packages.
I hope this helps! If you have any other questions or need further clarification, feel free to ask.
Thanks for sharing! What's your fund's AUM?
Separately, do you have any portion of comp that is deferred? Or is it all cash?
Mostly cash.
Would be great to hear your path to date
Also, why LO / HY over private credit? How interesting / what are the most interesting parts of your job?
Can you talk about how your responsibilities changed as you got from Asso to VP?
Private Debt is more project type work with a number of cooks in the kitchen with multiple layers of approval and cumbersome processes.
I enjoy learning about new sectors and how businesses work. My current role gives me the flexibility to do as much work as I would like and my PM making the final call. I also enjoy the markets side in terms of relative value and trading.
Finally, the autonomy and deadlines allow myself to manage my time efficiently. I am not pulled in multiple directions as you would be in a Private Debt deal for example.
Can confirm. 4.5 YoE,mostly CLO work with 30/40% of the time spent on DL/Credit opps, expecting £225-250k
Mind if I PM on this ?
Do most LO / CLO roles have some exposure (i.e. 20-30%) to credit opps / private opportunities?
Dependent on if the fund has those strategies as well. Also found that usually in Europe the CLO analysts work on more stuff, so might be different in the US. The driver of that is that the market in Europe is much shallower, while in the Us if something goes awry you can sell easily enough.
Can confirm associate pay above - in line with what my friends in the space earn.
Does anyone know how this progresses at the director/exec director level?
Starts to vary a lot more but in my shop directors are around the 160-175k mark base with bonuses well above 100%. You get co-invest into the CLO equity which can be quite profitable and some equity into the company I believe.
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