VERY basic question on debt funds

Hi -

I’m a forth year attorney at an AMLaw 100 firm in NYC. I have an opportunity to transition to an in-house legal role at a debt fund. 

Was hoping you all could help with a couple of very basic questions:


1. Is the bonus guaranteed? At my law firm, if I make my hours, my bonus is guaranteed, period. Is the bonus guaranteed in the debt fund worldcor is it subject to change at the whim of senior management?


2. Obviously can’t ask this at the interview, but what is typical vacation policy? We have four weeks PTO at my firm and, with young kids, I use every day. Is four weeks typical at a debt fund?

TIA. 

2 Comments
 
Most Helpful

Bonus is discretionary and related to both personal and fund/company performance. It is generally not guaranteed. Obviously, if you are working for good trustworthy people in a good stable business it should be relatively predictable and there should be targets involved. In a down year there will likely be a lower bonus, and obviously a higher bonus in great years. This type of thing will vary greatly fund to fund depending on the nature of it in terms of risk, returns, strategies, durability, size/aum, etc.. A larger fund with more management fees will likely be able to provide more stability on that end than a smaller fund which is more sensitive to performance and the ups and downs of investment and attempting to grow.

I would again imagine vacation varies fund to fund, but I know at the fund I work at we get less than that. I get 14 days of PTO plus 5 company-wide closures, and 5 floating holidays.

 

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