UK CLOs Compensation
Hi all,
Was wondering what the compensation range is for Analysts at CLO funds and what is the progression like? Have heard some very different figures. Thanks!
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Based on the most helpful WSO content, compensation for CLO analysts varies significantly depending on experience, fund size, and location. In the context of the UK, while specific figures for the UK market aren't directly provided, we can infer from the general data available:
Junior Analyst Compensation: For analysts in the early stages of their career (0-7 years of experience), compensation can range from $100,000 to $300,000. This range likely translates to approximately £75,000 to £225,000, considering currency conversion and market differences between the US and UK.
Senior Analyst Compensation: As analysts gain more experience (8 years and beyond), compensation can increase to the range of $300,000 to $500,000. In UK terms, this might equate to roughly £225,000 to £375,000, adjusting for market differences.
Progression and Beyond: For those moving into more senior roles, such as Senior Analyst/Junior PM or PM, compensation can range from $350,000 to multiple millions, depending on the success and responsibilities within the fund. Translated to the UK context, this progression could see salaries starting from around £262,500 and escalating significantly based on performance and fund success.
Career Progression: - Analyst to Senior Analyst: Typically involves gaining deep expertise in CLO markets, improving analytical skills, and taking on more responsibility in deal analysis and portfolio management. - Senior Analyst to PM: Requires not only a strong track record in investment analysis but also leadership skills, as PMs oversee teams and make final investment decisions.
It's important to note that compensation in finance, particularly within niche areas like CLOs, can be highly variable and influenced by individual performance, fund performance, and broader market conditions. Additionally, bonuses and incentive structures play a significant role in total compensation, often making up a substantial portion of the package.
Sources: Life as a CLO Analyst + Career Progression, CLO Asset Manager, Credit Hedge Fund opportunities
I assume this is the UK and that by analyst you mean the research team looking at the collateral.
depends on manager-
LO managers with CLO franchises will be lower
Hedge funds with CLO arms will be higher (Arini et al.)
Progression-
out of uni
Grad analyst 1/2 yrs (~£55k base) > Associate 1/2 yrs (~£60k base) > Senior credit analyst (>£95k base) > Not much movement for a few years > Director of research or Assistant PM (~£120k)
20-40% bonuses. some incentive fees/equity/phantom shares
Is the UK CLO market really that bad? Seems hard to believe a PC associate is earning double a director of a CLO
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