Trying to get a sense of how CLO fees and comp for credit analysts at CLO managers scale. I understand CLO managers charge management fees (typically less than what a direct lending fund or fund with a higher yield target would charge), but do CLO managers charge any performance fees? How does comp scale for credit analysts at a CLO fund? Is there any "carry" like there would be on the direct lending side for example? Trying to understand what the career earnings of working at a CLO fund look like vs direct lending/private credit.
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Yes they charge performance fees, each tranche they manage is trying to hit different bogies and the lower tier tranches can bring in quite nice returns. The business overall is not as profitable as a traditional fund but in a strong year performance fees can be quite hefty.
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