Private Credit 2024 Bonus Megathread
Has a thread for 2024 private credit comp been started yet?
Level: [AN1 / AN2 / AS1 / VP2 etc]
Institution: [Large AM / PC shop / AUM etc]
Group: [DL / Alternative / Special Sits / ABF / Infra / Industry Focus etc]
Ranking: [Bottom / Middle / Top]
Location:
Base $$$ / Bonus $$$ / Total Comp $$$:
Stock / Deferred / Carry:
Credit VP UK.
Upper middle ranking
150-180 / 350-400 / TC 525-575 gbp
Carry over next 7 years in region of 3-4.5m gbp
How many years of experience? And do you receive your carry in cash?
Any info on type of fund / strategy / background? thanks
This is pretty fucking good provided that the carry hits. Do you build on top of that carry every year?
AS1
Mid single digits aum
DL
Tier 2a
Base: 125 bonus: 85 all cash
Increasing ~20% total for as2
What're your hours like?
Bump
As1
DL
60-70h a week
All in £170k, feeling under comped
Up 5% for next year
MF DL (T1 City Non-NYC)
Senior Associate
Base: $175k
Cash Bonus: $225k
Annualized Shadow Carry Allocation: $75-$125k
Hours?
55-60
Congrats on SF
What is shadow carry?
AN1 MF DL
Ranking: top
Base: 110
Bonus: 110
TC: 220
How can I recruit for roles like ths.
Banking/other strong sophomore internship and recruit for a PC junior summer analyst stint. Case competitions & investment clubs help too. Technicals & behaviorals are basically the same as IB/PE, but some added focus on credit (leverage ratios/ICR/underwriting process). If you don't get a summer analyst offer, you'll need to pivot in as an associate after 2 years.
DEL
Associate 2 DL £130k + £110k TC should increase by £40k next year
Mind sharing info on type of shop and typical hours?
UMM
Hours 60-110
following.
How do you negotiate comp increases?
you dont... unless you get another offer / threaten to leave but you probably can only do that once..
Am I naive going into PC expecting chill(er) hours but good pay?
Depends on the firm and location
Top PC firms can pay in line if not better than IB. But as the other poster said, varies significantly depending on location and firm.
Some tier 1 shops are sweaty while some aren't.
Within PC also depends on the actual strategy. Pure direct lending is likely going to be chill compared to special sits, whereas some firms like Ares are even within DL known to be sweaty
Vanilla direct lending has some of the sweatiest shops on the street. GS PC/Blue Owl for example have juniors working nearly every weekend and consistent late nights. It’s pretty much the worst of both worlds because the deals are boring and the sheer volume of them + portfolio management is crushing.
Quick question: Is it realistic to go from a GS/JPM IB DCM analyst role to a PC associate, or would you need to transfer internally to levfin or coverage first before making the move?
bump
Bump
Probably, the big thing is probably the modeling experience that they'd like to see. Although could be possible with DCM--Fwiw I knew a guy 2nd/3rd year analyst at JPM IB Credit Risk, exited to a solid PC associate role NYC.
An1
MM, single digit AUM, DL
T1 City
Base: $100
Bonus: $20
Feeling under comped.
That is ass for NYC / SF / LA
unless this is Antares and you’re in Chicago
Single digit aum..
Bout tree fiddy ($3 AUM)
Experienced ASO - $350 all in. What's market for Senior Associates, and how many years from Senior ASO to VP?
Level: AN2
Institution: Large Insurance Company IM ($700-900B AUM)
Group: Alternative- Private Credit
Location: T3 City (Southeast)
Base $120k / Bonus $50k / Total Comp $170k
how many deals did you close?
What are your hours like?
what does IM stand for here
bump
LMM DL (Non-NYC)
Senior Associate 1; ~65-70hr/wk
Base: $180K
Cash Bonus: $150K
Carry: n/a
Level: VP
Institution: Private Credit Fund
Group: Opportunistic Tech
Ranking: Top
Location: California
Base: $180k / Bonus: $105k / Total Comp: $285k --> base moving to $200k in 2025
Actual Carry Distributions received in 2024: $90k --> expect $150k in 2025 given fund lifecycles
Hours: 40-100hrs/wk - when it's on it's on, but when it's not it's very chill
How are you making less than an Associate at some firms as a VP?
Believe it or not, not every credit fund is a $10B+ fee gatherer
Level: VP; ~10 years exp.
Institution: Bank
Group: Sponsor Backed Lending
Ranking: Top
Location: Chicago
Base: $185k / Bonus: $300k / Total Comp: $485k
Carry: N/A
Hours: On average ~60 hours per week
That’s solid for a commercial bank. What is the path from here? Do you have to pick between originations and underwriting ?
is comp all cash?
What bank ? What’s the long term earnings potential in the group?
How much of this is equity? What are future comp expectations ? Is this BMO? We can DM too lol
Associate 1
Top
GBP 120k base + 40k cash bonus
40 hours per week
What type of shop is this (MF, MM, bank,etc..) ? Thanks
Wouldn’t classify as a traditional MF (KKR / BX / Apollo) but not small either. More like a CVC, Ares, Permira type
chers for sharing mate- is this for the Direct Lending Investment team?
No
what kind of strategy? thought bonuses would be closer to 100% but your hours are great of course..
An1
Opportunistic Credit
Top
Base: 120
Bonus: 65
TC: 185
Very happy with this tbh, def feeling like I made the right decision to "skip" / not do banking.
Hours?
Usually ~60, the bulk of which comes M-Th. Fridays tend to be lighter and weekend work is very rare.
How big is the firm? Is it NYC/LA or elsewhere?
NYC, MM firm -- decent size but far from MF.
what is your actual title and how did you get into this role?
Level: VP1
Institution: PC affiliate of a larger fund (~$20-$30bn AUM)
Group: ABF/Structured Credit
Ranking: N/A but solid performance review
Location: NYC
Base $250k (increasing to $265k) / Bonus $185k / Total Comp $435k (all cash, no deferred)
Hours: ~60
Feels a little light but not surprised...been in talks with some other shops and hoping to get a better bid away.
What do those other shops offer?
what is director at your shop?
and what do you think director is at those other shops?
Thanks
I think market TC is probably 500-600k for my role/level, so more money for one thing. Also trying to pivot to a related but slightly different kind of seat that isn't really available where I am now...not sure I'd make the move solely for comp despite feeling a little short-changed.
Not totally sure about Director-level to be honest. I think base is 300k and TC is probably 700-750k-ish +/- 100k depending on the team/individual? I think that's probably around where the rest of the market is too.
Overall I think we're probably at or maybe just slightly below market. I think mine is a bit more of an outlier because of bad timing with a prior lateral move (a few years ago) combined with fairly rigid/top-down comp practices at the institutional level, which has left me stuck in a loop of just getting comp'd to what I got last year rather than where the market is.
What kind of firm is this? This seems really low - aren't VP1s at 500k+?
See my response to "Senior VP in PE - Other" above.
In case it's not clear, I am "Associate 3 in S&T" above...updated my title in between and I guess it doesn't update your older posts
Any insights on comp at BB’s LevFin / Private Credit teams? Ideally at associate level in London?
Lev fin is standard ib comp in line with all online data
No, I mean balance sheet banks where LevFin include directly underwriting companies and issuing MM unitranches / senior loans etc.
MM opportunistic credit:
Principal
$500m fund, $1b AUM
Tier 2 city
$225 salary/ $225 bonus Carry: prob get $300-$400k of carry this year depending on exit timing. $2-2.5m CAW next fund
45-55 hrs a week
Do you have underwriting and originations bifurcated? What's your career path and expected future comp?
what is assumed MOIC on your DAW?
Did you have to put capital in for the carry?
No, but I don't own any of the GP. Carry stake is just in fund profits.
MM opportunistic private credit:
Director
$2bn fund, $8bn AUM
Tier 1 city
$250 salary / $625 bonus
Carry: N/A
That’s insane cash comp. Can you PM the name of the firm?
Why no carry. Are you in a sourcing seat and can you speak to the types of deals being done at your platform?
Is this tied to you originating delas or just underwriting?
Would you elaborate on your career path? Like what entry level roles and transfers lead to this level of responsibility?
Just how it is at this platform unfortunately. But also why cash comp is higher. The seat is sourcing and underwriting. Generally doing higher octane direct lending, S+650-800 type investing.
Do you guys hire at this level externally and do you need pre-existing originations track record? Is it everything but LBO financing?
Level: VP1
Institution: Small newer fund, $500mm AUM
Group: ABF/Structured Credit
Ranking: N/A but solid performance review
Location: West Coast
Base $175k (increasing to $185k) / Bonus $165k / Total Comp $340k
Hours: 40-50
Carry: none
A bit annoyed at the no carry piece since this was something I had discussed with management when I joined and they said they were still figuring out the carry system. To be fair, we have pretty low deployment right now and I think our performance fees are going to pay normal fund operating expenses. Going to get more confirmation on carry timeline in the next month or so.
ABF is priced at 200-300bps - what would carry economics look here on a sub $500mm fund?
Sorry i should be more clear, we do warehouse lines and forward flow for assets. US and non us targeting mid teens returns
Would love to DM and learn more about your role!
Level: VP1
Institution: MF PC
Location: Tier 1 City
Base: $200K
Bonus: $575K Cash
Deferred: Minimal / No Stock
Hours: 40-60
Yeah now this seems like an insane role for the hours. Congrats would love to learn more if you could DM
Amazing. Congrats on a great year.
How typical is this. Is this Apollo, ares, hps level shop?
Apollo and Ares VPs averaging 40-60 a week? Really bro?
Is VP a post Associate role at your firm? This comp seems out of place
HPS VP1 base is 200 so that is likely who this is. Makes sense for high cash comp after acquisition, likely has a clawback attached.
Any idea what other players (ie. Ares/ Sixth Street) in that space pay for VP1?
Following
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VP1
Private Credit/Specialty Finance
NYC
250k + 225k
45-50 hrs
Deleted
Do you have any carry?
VP2 Special Sits Private
All in: £650k
Carry: $1.1mm
Hours: 60ish
Feels a bit low for the strategy
Is that an annual carry grant? Or for the entire fund? How does fund size look like?
No not annual carry grant I wish haha. Back end weighted over 4-6yrs, not exactly sure if this gets topped up every year we will see.
Typical credit shop set up - SS is only a few bn fund but it’s within a larger direct lending shop like the Arcmonts/Alcentras.
Is this true Special Sits / Distress or is it Special Sits Direct Lending?
bump
Not really sure it fits super cleanly into either bucket (although Special Sits as a term is general af). Can you elaborate/quantify exactly what you’re asking? Do you mean more secondary trading vs. primary? Or chasing hairy non-sponsor deals for 10-14% vs. more complex situations for 15-20%. Or throw out some firms and I can give you a proxy maybe.
Is this LDN? Feels quite a good comp for UK standards. Why do you say it’s low for the strategy? Do you have any other data points?
I feel like the higher octane seats get paid more. Peers at pure HF structures doing a similar thing (and maybe more liquid side) with maybe a bit more appetite for restructuring processes get decently more than this in good years like £900-£1,400k. I’m not sure what that would look like in a bad year. I assume more vol but don’t have any hard data points
What’s market for Associate 1 for a Ares / Sixth Street / Oaktree type shop?
Not sure about those guys specifically, but I would say my firm is one notch below them. For us, a first-year associate is 125+125
What is the fund size at ur shop?
Pretty sure it’s 150 base + 150 bonus = 300 TC cash
May have change slightly or vary between firms but all end up at same total basically
Credit VP, Large AM - BSL Group
Top Ranking
Tier 2a
$185/$195/$130 Base/Cash Bonus/Deferred Bonus. $510 total comp.
Deferred part of normal comp package, 4 year vesting. No Carry.
Hours: 50-60
What’s your YOE here? Seems high for a BSL team?
12 years total work exp, 9 years in Credit. Comp is on par with discussions I've had about jobs away at competitors.
Senior associate 2
DL
NYC
Base: 225
Bonus: 250
Type of shop? Assuming MF size / AUM
Confirmed
Helpful; confirming this was your second year as a senior associate? What was comp last year as first full year at senior associate? Thanks!
Total comp was 25k less
Pretty disappointed with mine given what i thought was a great year for our team. I had expectations of at least 2 - 3x base. Have to give ranges (sorry)
Asso 3
Megafund
Special Sits / DL
Base: ~£140k - £150k
Bonus: 90% - 100%
Total Comp: £270k - £290k
Got some tips from the MD though lmao (can't disclose what this is sorry but it is in $)
Hours: 50 - 60 hours a week; sometimes weekend work
VP1
MM/UMM PC within large AM
Base: $250
Bonus: $250
Stock: $200
Phantom Carry: $200
how does the phantom carry work, is the $200 an annual number?
yes, annual number. hopefully increases each year but haven't gotten much visibility.
If you're getting stock this is probably a BDC. Is VP the Principal equivalent at other shops? Because $700k cash like + $200k carry sounds high for VP
credit arm of public AM / IB. no, there is a director/principal/svp equivalent title above me as well.
AS3
MM PC (Traditional Direct Lending)
$165 / $80 (Base / Bonus)
Hours: 35/40 during slow times upwards of 50/60-65 when cranking
Feel like I'm being under comp based on all the responses. WLB and culture is good but wondering if I should start looking elsewhere
Think you might be getting underpaid. How big is the fund?
If you’re in Chicago or a less expensive market this isn’t terrible
Its in Chicago, it is a Monroe, Twin Brook, MidCap type shop.
AN2
MF
Portfolio management, direct lending
Middle bucket
Tier 1 city
$110k base / $55k bonus = $165k total
this seems very low?
Portfolio management isn’t gonna be worked or comped like UW/ originations
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