Private Credit Comp Across Levels in London – What Are You Seeing?

Based on the most helpful WSO content, here's what you need to know about private credit compensation in London, particularly in the direct lending space:

Analyst/Associate Level:

• Base Salary: Around £70k at the junior end seems accurate for larger funds.
• Bonus: Bonuses can vary significantly but are typically a meaningful percentage of the base. While exact figures aren't provided, bonuses in private credit often range from 50% to 100% of the base salary, depending on fund performance and individual contribution.

Vice President (VP) Level:

• Base Salary: For VP2, a reported base is £175k, staying flat into VP3.
• Bonus: A cash bonus of £205k has been noted, with an 85/15 split between cash and deferred payments over three years.
• Carry: Carry allocation can be significant, with an example of approximately £1m, paying out roughly £50k per year over five years, with the remainder back-ended.

Managing Director (MD)/Partner Level:

• While specific figures for MD/Partner aren't detailed in the dataset, carry economics at this level are typically substantial, especially in direct lending. The top end likely includes a combination of high base salaries, significant bonuses, and lucrative carry allocations tied to fund performance.

Comparison to Sponsor-Side PE:

• Direct lending compensation is competitive but may still trail sponsor-side PE at equivalent levels, particularly when factoring in carry. However, the gap could be narrowing due to the growth and increasing importance of private credit in the market.

Variations Between Platforms:

• Compensation can vary widely between large-cap direct lending platforms and mid-market players. Larger funds tend to offer higher base salaries and bonuses, reflecting their scale and deal flow.

If you're looking for more granular data or additional insights, engaging directly with professionals in the space or leveraging WSO's resources like the company database and compensation reports could be helpful.

Sources: London Private Credit Compensation 2022, London Private Credit Compensation 2022, Private Credit / Direct Lending Comp