Has a thread for 2023 private credit comp been started yet?
Level: [AN1 / AN2 / AS1 / VP2 etc]
Institution: [Large AM / PC shop / AUM etc]
Group: [DL / Special Sits / Infra / Industry Focus etc]
Ranking: [Bottom / Middle / Top]
Location:
Base $$$ / Bonus $$$ / Total Comp $$$
% Stock / Deferred / Carry:
Based on the most helpful WSO content, it seems that a thread for 2023 private credit compensation has not been explicitly mentioned in the context provided. However, there are threads from previous years, such as the "2022 Private Credit Year End Comp" and "2021 Private Credit Year End Comp," which indicate that discussions around compensation in private credit are a recurring topic on the Wall Street Oasis forums.
If you're looking to start or find a thread for 2023 private credit compensation, you might want to check the Credit Forum on Wall Street Oasis or start a new discussion there if one hasn't been created yet. These threads typically include detailed compensation data from various professionals in the industry, which can be quite insightful for benchmarking purposes.
Remember to include the level, institution type, group, ranking, location, and compensation details when contributing to such threads, as these details help provide a comprehensive view of the compensation landscape in private credit.
Sources: S&T Bonus/Comp Thread 2023, 2022 Private Credit Year End Comp, 2021 Private Credit Year End Comp, London Private Credit Compensation 2022, Private Credit Comp
Bump
I'll start
Level: AN1
Group: Direct Lending
Ranking: Top
Location: NYC
Base $110k / Bonus $90k / Total Comp $200k
What type of shop (MF/MM/LMM…) and how did hours / deal flow look this year?
It's an MM shop and ~60-70 hours. Deal flow was slower compared to prior year given the post-COVID heyday, but still solid.
Straight out of UG?
Yup, straight out of undergrad.
Delete
What are hours like at the VP level at your shop?
Delete
Helpful. How many years between ASO and VP at your shop? Also, is there a Senior ASO title and if so how many years between Senior ASO to VP?
No senior associates, 3-4 years from associate to VP depending on how good you are. We’ll mutually cull those who aren’t getting promoted
Wanna toss out a few comparable firms?
Do you get carry too?
$610k on a 50 hour week??
Private credit is where it’s at god damn.
I see how at the senior levels if you're non-PM comp kind of stalls out between $1-2 million. But even then that's pretty good.
Level: Senior Associate, portfolio management & restructuring
Institution: 1-1.5bn AUM
Group: Special Sits
Ranking: Top
Location: NYC
Base 175 / Bonus 105/ Total Comp 280
% Stock / Deferred / Carry: units equivalent to $1mm carry, 1-year cliff, 4 year vest
What does a 1 year cliff mean? Apologies, still learning terms
1 year wait before vesting starts
At what level were you first eligible for carry?
Senior associate
I know this is a comp thread, but could you give some insight into your decision to pursue the PM side vs underwriting?
Sure, my firm splits UW and PM and I wanted to stay with the portfolio companies after close to learn what makes a good company vs a bad from an execution standpoint. I also wanted more stability and PM/RX is pretty recession resilient. Ive enjoyed PM and am moving to UW soon having learned a lot.
Its also more chill with predictable hrs vs UW. Worked on avg 40 hrs with occasional fire drills and 60-70hr weeks once per quarter.
At your firm, are you considered front office or middle office?
100% FO. We own our books and handle all workouts/amendments/issues etc. We're expected to present our thesis to the IC just like our originators. Teams are interchangeable and Ive underwritten new deals as well.
is it a carry allocation you get every year?
Level: Sr Aso Yr 1 (prev 2 years IB and 2 years ASO)
Institution: $5-$7bn AUM PE/PC shop
Group: Private Credit
Ranking: Top
Hours: 50
Location: NYC
Base $165k / Bonus $170k / Total Comp $335k. $300k Carry DAW
New Base: $170... feeling undercomped
Why do you mark the carry as useless?
Do you get carry refreshers every year? Tbh feels relatively in-line for fund size (assume its probably $1-2bn dedicated to credit).
Better question likely is -> what would you expect to be paid?
AN1 4-6bn PC Fund Europe Base: 75 Bonus: 46 (now) + ~15 in summer Hours: very quiet year, likely 45-50 on average
Level: AN1 stub
Institution: 15bn AUM independent credit fund
Group: all juniors are generalists
Ranking: No bonus differentiation (stub)
Location: London
£70k base / £23k bonus (stub, started in Jul)
% Stock / Deferred / Carry: 0
got raise to 80k retroactive to Jan so am happy
Private Credit associates clearing 300k to work a 9-6 and slap together term sheets off of some juiced up hardcoded sponsor models wtf am i doing.
Putting the models together.
At my shop, the associates/VPs work close to IB hours.
What is comp for VP and Dir?
Vp1
15bn aum
525 total comp
250 base / 175 bonus / 100 carry (paid quarterly in cash)
Thanks. What strategy (sponsor finance) and city is this. Hours worked and what do you think is Director comp?
()
Similar firms? Much higher than I’ve heard
Congrats, that is absolutely unheard of. Top of the market by a large margin, even more so given the "few" hours worked.
This is fucking insane?
Outmatches PE pay by a longshot. Why would anyone do PE when credit pays this?
This is insane. Is your background in IB or something else?
Do you mind sharing your background? Hoping to get into PC so just curious if its the traditional LevFin or something else
Sounds like HPS...
Negative, associates are not at $160 base at HPS
Level: Senior Associate
Institution: PC shop $3-5bn AUM
Group: investment team (all generalist)
Ranking : Top
Location : NYC
Comp: $315k base / $50k bonus, all cash
Carry: 150bps
Curious how people view this package. I’ve been content and view the total comp being highly skewed towards base as a positive. But hard to not get jealous of those making 5 hundo at the MFs
$315k base?!?!?! Damnnn congrats. What are your hours like?
anything on BCP
AN2 at PC fund in Continental Europe
Direct Lending and Mezzanine
Hours: 45-50 on average the last 6 months
Base 80k EUR + 40k bonus
Level: AN2
Institution: PC
Ranking: N/A
Location: NYC
Base $125k / Bonus $125k / Total Comp $250k
Hours?
Size or reputation of firm? That’s great
Assoc 1
Family Office
Direct Lending
NYC
$140k base, $155k bonus, $295k total comp
Now sure if this counts
Level: AN1
Group: HY credit research
Ranking: Top (250bill aum)
Location: NYC
Base $105k / Bonus $35k / Total Comp $140k
looking to move shops
Public market stays losing with poverty wages.
Similar position and comp - what are you looking to move too?
Private credit. After looking at this thread, more and more affirming my belief lol
So I guess I should’ve gone into private credit is the main takeaway from this thread
VP; LMM Direct Lending ($5Bln AUM)
Chicago
Base: $175k / Bonus $300k / Equity $25k
This vp1? Very close to my TC at a larger fund
VP 3 I guess you could call it w/ ~9 years total exp. Do not expect the same going forward given a variable comp structure based on new deals booked.
Would anyone here be willing to have a convo about transitioning from IB to PC at the associate level?
Congrats on what seems to be great comp this year
Bump on this!!!
:)
Level: Associate 3
Institution: PC at a credit focused manager
Ranking: Top
Location: NYC
Base $175k / Bonus $175 / Total Comp $350k
% Stock / Deferred / Carry: Awarded carry I'd value at maybe $100-150k conservatively
How is the carry structured? Is that $100-$150 the amount granted for 2024 paid over X years or is it an estimated value based on a recent fund raised? Thanks.
Its a fixed % of recent funds and both vests / fully pays out over 3 years given duration.
Bump, any non nyc numbers?
VP3, London, Special Situations
Base: £150k, Bonus: £340k, Total: £490k
Carry allocated: $2.5m equivalent (will pay in 5-7y, maybe!)
Thanks, much appreciated.
What's roughly AUM?
bonus all cash or some deferred / rsu?
Do you expect to receive similar / higher carry amount on a regular basis going forward?
Level: VP
Group: LMM DL
Location: Not NYC
Base 180 (going to 200) / Bonus 185 / Cash Comp 365
Carry Grant for 2024 of ~50 (3 yr vest)
Mind sharing brief background and hours? IB prior to current role? Would be much appreciated to the extent you feel comfortable.
Director
$6B AUM Direct Lending Fund
Non-NYC
Base: $200K / Cash Bonus: $260K / Equity $340K / Total $800K
Chicago?
Is that equity in public stock subject to vest or more a carry that’s paid out (current or end of fund life?
is this comp level for a sourcing seat or an underwriting seat?
following
Associate
Mega Fund
London
Base: ~£130 - £140k / Cash Bonus: £120k - £130k
Not particularly happy this year
Sorry have to give ranges
Helpful datapoint - are you ASO1, and is this an EU or US MF?
Would you mind providing a range of hours and if you’re in the DL/SSits or another team?
US MF
Hours - 50 - 60 hours a week (inclusive of weekends), sometimes 70 depending on the situation
Thanks for sharing - is this for junior or senior associate?
.
Sagard?
Penfund?
Senor associate, large direct lender in NYC
bonus was 250k, total comp was 450k
Any insight to investor relations comp?
Level: Sr Associate 1 --> 2
Institution: MM direct lending (mid-single digits bn AUM)
Group: investments team
Location: NY
Base: $175 for 2023 cycle --> $185 for upcoming year
Bonus: $185
Total: $360
% Stock / Deferred / Carry: all cash
Anyone else willing to give a more London-centric perspective? Also curious to hear thoughts / anecdotes on PC vs. PE comp delta (bar the obvious higher upside in PE carry) - this thread makes me want to move to NY, the COL isn't that higher to London to warrant these sort of uplifts? Any thoughts welcome
Level: VP2
Institution: MM PC $1B AUM
Group: Opportunistic Strategy, Generalist
Ranking: Top
Location: Non-NYC
Base $190 / Bonus $190/ Total Comp $380 (going to $210K)
All cash, 300-400bps carry in each fund we have.
Associate in Chicago. 140k base / 140k bonus. Averaging 40-50 hrs a week.
.
What type of fund?
Role: Analyst 1 (full year)
City: LA
Firm: Oaktree / Ares / Apollo
Strategy: Special sits PC
Base / Bonus: 120 / 100
Thanks for sharing - how many hours a week on average?
bump
this has to be Ares ASOF
Role: Origination VP (ish) weird title structure
City: Chicago
Firm: Boutique (under $500MM AUM)
Group: Special Sit/legal assets
Base/$275K Bonus/$140k/$300k in equity (illiquid) Total Cash Comp:$415k
(Non target as shit, came up through a non traditional track at a borrower)
What do you mean by equity? Carry? How certain is 300k and when. If true, this is similar to mega fund comp
$300k in equity is a grant, for equity in the business (not structured as a GP/LP) - so certainty is low. Would require a liquidity event such as a sale of the business or an IPO. Both are a ways off if they ever happen.
Hoping to separately get carry in the next year or two. IRR is steady historically north of ~25%.
Recently got an offer, 4 years of experience coming from 2 years of IB M&A, wondering if it’s below market?
Level: Associate, underwriting
Institution: 1-1.5bn AUM
Group: Direct Lending
Location: Tier 2 City in the US
Base 135 / Bonus 70/ Total Comp 205
Seems about normal for fund size, maybe a little bit low but nothing materially. Depends also on city. What city ?
Tier 2 East Coast, so not Boston/NYC/Miami
I am based in Europe but it seems ok, prob Associate 1? My first year associate was slightly higher but it was a great year for the company so prob biased upward and at larger firm
anyone have insights into London figures?
VP, London, Opportunistic Credit
Base: £175k, Bonus: £325k, Total: £500k. 10-20% in equity.
Carry: $4.5-5m equivalent (paying out from today up to 7 years, back-ended profile)
Qui repellat non delectus quaerat aut. Error labore architecto ducimus ducimus.
Ut ea sed quasi. Excepturi ut enim nesciunt qui. Velit soluta dolores asperiores beatae ut non sapiente. Sequi velit et vitae dolores reiciendis quia. Ut qui labore sunt.
Et molestiae exercitationem enim impedit accusantium aut aperiam exercitationem. Dolor laboriosam itaque autem aspernatur est quasi aspernatur.
Suscipit quia eum fuga fugit sequi adipisci. Suscipit ut facere porro omnis temporibus. Nulla enim laborum qui animi repellat qui atque. Autem sed perferendis vero accusamus voluptatibus voluptatibus alias. Cupiditate consequatur temporibus vero eveniet alias vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Saepe beatae inventore quisquam. Qui et nisi doloremque et totam et veniam. Voluptas in placeat eius et. Saepe in consequatur esse non eum placeat.
Quisquam molestiae harum sit sapiente. Quo ad delectus maxime voluptas. Velit rerum optio id est sit cumque aut. Ut cum quas quisquam quod ipsa et dolorem.
Labore ut fuga fuga veniam. Nihil ea et aut eius ut laborum. Ratione perferendis odit illum consequatur.
Iusto totam et accusantium in dolorum quia qui. Pariatur totam placeat consectetur neque. Architecto est qui sapiente perspiciatis autem quam. Dolorem ea odit quaerat vitae ex deserunt a enim.
Officia velit tenetur vitae molestiae quam repudiandae natus. Praesentium consequatur fuga odit repellendus rerum fuga optio. Sed necessitatibus modi rerum omnis eum unde. In vel qui aperiam temporibus.
Voluptatum quam rerum eveniet. Soluta dolores enim sit quia saepe vel est. Nisi libero dolor sit qui qui voluptatem tempore quis.
Eaque similique rerum culpa. Neque aut dolorum blanditiis voluptas et esse. Delectus quasi est id quaerat maiores nesciunt quidem quam. Dignissimos ad et iure dolores. Voluptates quia ratione quas non eum.
Ut eum sit non quis saepe quaerat. Tenetur nihil praesentium vel molestias accusantium. Id eum autem illo nisi magni. Soluta odio voluptatem et sapiente sunt neque nisi. Magni reiciendis ut consequatur doloremque dolorum. Est sed ut voluptatem esse enim et.
Maxime distinctio aliquam odit sapiente. Labore est aliquam libero eum voluptatum sint qui. Sunt ducimus saepe est odit natus. Tempore suscipit distinctio alias excepturi velit.
Sit velit possimus aut mollitia ut. Molestiae in dignissimos odio eaque atque. Sed ut ipsa consectetur dolores corrupti ratione.
Ipsam libero adipisci dignissimos recusandae harum et quia. Omnis corrupti maxime quia eos sit dolores amet. Voluptatem voluptas ut quasi fugit id asperiores.
Iusto accusantium voluptatem qui nobis enim atque. Aut sit impedit quisquam esse et. Atque vel blanditiis et perferendis. Quia voluptate dolor repellendus sunt quasi. Esse impedit qui omnis quo cum. Est ut quis ea velit facere voluptas. Adipisci blanditiis saepe quia minima omnis.