Credit Fund/Direct Lending Salaries 2019
I’m interested to hear what comp looks like for an analyst/associate/VP at a credit fund or direct lender. Please list the market. Thanks!
I’m interested to hear what comp looks like for an analyst/associate/VP at a credit fund or direct lender. Please list the market. Thanks!
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Career Resources
From friends in the industry: analyst salary is usually the same base as IB analysts ($85k) and bonus is slightly lower ($30k-$50k)
If you’re going to a name brand shop, associatecomp will be between the $200k-250k range. These shops mostly recruit out of IB analyst programs (Ares, Golub, GSO, PennantPark, THL Credit, Maranon, HPS, Owl Rock, Bain Capital Credit, AEA Private Debt, etc)
Analyst: $80-95k + 10-45% bonus
Associate: $100-150k + 25-75% bonus
Sr. Associate/AVP: $150-200k + 50-100% bonus
VP: $175-235k + 80-130% bonus
Principal/SVP: $225-275k +100-150% bonus
MD/SMD: Who Knows
PE shops will diligence an investment harder than the credit funds. I can take educated guesses on primary reasons:
Equity investments are, by definition, riskier and should require a more robust investment thesis.
The PE shop may take an active role in operating the company and directing its strategy, wheras the lender is a passive participant.
Credit funds often have longstanding relationships with sponsors, and to an extent they can rely on some of the diligence done by the sponsor rather than duplicating efforts.
And I could be very wrong on this last one, but I assume PE funds are taking fewer, more concentrated bets, while credit funds have greater portfolio diversification.