Feedback on Private Credit offer
Hi WSO,
Wanted to get some feedback on an offer I received for a LMM Private Credit Firm. I am currently an ASO1 in Loan Capital Markets with a BB, non-traditional route coming from CB so just over 4 YOE.
Offer:
- Associate 2/3, 1 year timeline to Senior Associate Promo
- $140k base, 40-50% bonus
- Firm has discussed offering carry to Associates and Senior Associates but no concrete decisions yet
Fund:
- Slightly over $1bn AUM
- 40 Employees, 25 of which are on the investment side
- Just finished raising $400mm for Fund 7, starting Fund 8 raise soon
- Special situations ABL focus with ticket sizes of $10-$50mm (fund 8 will increase ticket size to up to $100mm)
- 10+ year track record
- ~15% IRR
Role:
- Portfolio team handing any follow-on financings (common for most borrowers), workouts (roughly 10% of loans end in workout)
- Focus on non-sponsored companies and PM team gets very involved in operations of businesses
- Firm has high focus on PM team given the LMM market they operate in
I feel like the offer is a bit on the lower side. I had originally asked for around $225k all-in. Curious what others thoughts are.
Can I PM you?
Bump
Not sure, if you're in a more portfolio type role then there will probabaly be some level of discount. What geography?
NYC
Can i PM you?
Working in PC and have lots of friends in the space. For associate 2/3 in NYC, you should be expecting $250k - $340k all-in if at a large fund like Ares/GSO/PIMCO Alts/MS PC. However, if smaller fund I'd assume a slight discount around ~200k - 300k all -in. Assuming you get your 40-50% bonus, you'd definitely be at the lower range around $200K. Your ask of $225 is more than reasonable especially given all the comp raises recently.
Appreciate the feedback. I'm going to stick to my guns for $225k.
del
Still sounds a little low to me. However if the 50 hours/week is true and consistent then I'd say it's a decent gig. Best of luck!
i work at a Umm/Mf type in PC - our associates make ~250k, senior associates ~400
Senior associates getting any carry?
yes
hi can I PM you?
Not a new money originations role although this team handles any follow-on financings. This firms a bit different in that they work almost exclusively non-sponsored deals and pair the companies up with sector experts. They only get involved in the operations side when, like you said, there is a workout which is about 1/10 loans. Most of their deals tend to trip covenants at one point or another so there is a fair amount of re-discussing and negotiating deals as they go on. They also take equity kickers in most deals.
Associate 2/3 should definitely be in the 225-300k range even for a LMM firm. Have a lot of friends in PC arms at MFs making average 250k as ASO 1.
250k Aso 1 at MF PC is (way) too low (at least for the top tier shops such as BX, Ares, Apollo).
FWIW I think Aso 1 is more like 350 at these shops post comp raises.
Comp makes sense for a portfolio management role
Agreed. This post is a bit old so wonder if OP got a bump in the end.
del
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