JPM Analyst Exit Opportunities IB

Just accepted a full time role at JPM doing CIB Credit Risk for Leveraged Finance Sub Investment Grade Healthcare sector in a HCOL city (Not New York). Work directly with LevFin, Coverage and DCM.  What will my salary look like? What is the bonus for that team? What is the salary progression like for Associates, VPs, ED, and MD? 

What are my possible exit opportunities? Private Credit at Ares, Oaktree, or Apollo? Hedge Fund? PE?, Can I lateral into DCM or LevFin (Prefer LevFin) at JPM or another bank? What are the hours like? I am curious mainly about salary progression and bonus percentage outlook and opportunities to lateral. Please help!!! 

23 Comments
 

Based on the most helpful WSO content, here's what you need to know:

Salary and Bonus Outlook

  1. Analyst Salary and Bonus:

    • Base salary for analysts in CIB Credit Risk is the same as Investment Banking:
      • 1st year: $85K
      • 2nd year: $90K
      • 3rd year: $95K
    • Bonus is significantly lower than IB, with a 1st-year bonus averaging $30K (median/mode), topping out at $55K for top performers. The bonus is about $5K less than IB for analysts.
  2. Associate Salary and Bonus:

    • 1st-year associate base: $105K (recently reduced from $125K).
    • Bonus for associates is notably lower than IB, and there is no sabbatical.
  3. VP, ED, and MD Salary Progression:

    • Specific figures for VP, ED, and MD in Credit Risk are not detailed, but the disparity in pay compared to IB grows significantly post-associate level.

Exit Opportunities

  1. Private Credit:

    • Exits to top credit funds like Ares, Apollo, KKR, and Oaktree are common, especially given your exposure to LevFin and DCM.
  2. Private Equity and Hedge Funds:

    • PE exits are less common but possible. Hedge fund exits are rare, with more focus on credit-related roles.
  3. Internal Lateral Moves:

    • Lateral moves within JPM are possible but require significant networking. Moving to LevFin or DCM is feasible but may set you back a year in terms of progression.
  4. Other Exits:

    • Common paths include corporate development, executive training programs, portfolio risk, or direct lenders.

Hours

  • Hours are generally better than IB, with most analysts leaving by 10-11 PM on weekdays unless there’s a live deal. However, efficiency plays a big role in managing hours.

Key Recommendations

  • If you aim to lateral into LevFin or DCM, focus on networking within JPM and showcasing your skills in credit analysis and modeling.
  • For exits to private credit or PE, leverage your exposure to LevFin and DCM, as these are highly valued in those roles.

Let me know if you need more insights!

Sources: CIB Credit Risk J.P. Morgan, JP Morgan Corporate Client Banking and Specialized Industries Salary + Bonus, Career Progression

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

i want a real response from a person, this post is wrong in multiple places. for example first year salary for an analyst I am getting 100k. for an associate it should be much higher as well.

 
[Comment removed by mod team]
 

CIB credit risk is not exactly leveraged finance or IB is it?

I know the credit risk guys at JPM love saying they are in IB or front office (maybe they are who the fuck knows its a postmodern world)
 

 

I think the teams merged as of a few years back so we are more on the IB side now. I thought it was middle office but from the Vps i have talked to apparently it’s front office as the Credit Risk team sits on in deals, calls, etc. it’s leveraged finance if you are on the sub investment grade side. My team does leveraged healthcare clients and work on dcfs and lbos

 

The team's function is to come up with internal risk ratings for loans and help navigate the internal approval process.

Most definitevely not front office, although there are some smart people and it's a pretty easy jump to IB, ABS or leveraged finance from the role if you're good at your job and generally mature enough to handle the jump. 

Something's seriously wrong if you're buiding LBOs or DCFs, but you should become pretty decent at building or at least understanding operating models, coming up with an informed view on downside scenarios and negotiating covenants as part of the role. 

 

Interesting, Maybe the People i have talked to just make it seem better than it is. I will know more soon. I start in 2 months. Just curious what is the base salary of an associate? do you have any idea what the bonus structure is like for credit teams and how the bonus grows with roles? I have seen somewhere that the bonus is 20-40% of your salary as an analyst. then 30-60% as an associate and 70-100% as a VP. 

 
Most Helpful

Some directionally correct but not 100% accurate info in this thread. To try to tackle your questions in a somewhat organized way:

Role: Not sure how it works at other banks, but at least at JPM, the IB credit risk team's main responsibility is doing the underwriting work / internal approvals / portfolio monitoring and maintenance for the RC holds the bank takes alongside its LL/HY deals. 

Salary: Salary at entry level i think should be comparable to commercial/corporate bankers salaries, but with a materially smaller (probably be 50-75% i would guess) bonus pool. Think the progression should follow the same - which means by senior levels, comp does slide significantly lower due to bonus becoming a greater and greater portion of all in pay. 

Exits: In general "buyside" exit opportunities probably limited to smaller / lesser known private credit shops (probably none of the names you listed). Hedge fund feels very unlikely. PE probably mostly out of question outside of maybe LMM shops

Lateral roles: Lateraling into another more traditional IB FO role is, while not a given, certainly attainable if your performance is solid and you can network well. Paradoxically it's probably easier to try to land a IB gig at another bank (would think of smaller market share balance sheet banks like an RBC/Wells/BNP type bank or a MM boutique such as Baird/Blair/Harris Williams) than to lateral at JPM probably (unless you can really connect and impress the bankers on your deals). 

Hours: ~40-50 on a good week, probably creep closer to ~60 when busy, maybe stretching to ~70 if you're on multiple live transactions on tight timeline. If you do the math, in all likelihood you end up making a good bit more $ per hour than your IB colleagues 

 

>"What are my possible exit opportunities? Private Credit at Ares, Oaktree, or Apollo? Hedge Fund?"

Whoever told you this is legitimately praying on your downfall. Tell them to go long blue owl stock immediately to get back at them

 

so then what are the exit opportunities. give me a genuine answer no one is giving any answers. just criticizing my post. I am asking a question. 

 

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