Feedback on Private Credit offer
Hi WSO,
Wanted to get some feedback on an offer I received for a LMM Private Credit Firm. I am currently an ASO1 in Loan Capital Markets with a BB, non-traditional route coming from CB so just over 4 YOE.
Offer:
- Associate 2/3, 1 year timeline to Senior Associate Promo
- $140k base, 40-50% bonus
- Firm has discussed offering carry to Associates and Senior Associates but no concrete decisions yet
Fund:
- Slightly over $1bn AUM
- 40 Employees, 25 of which are on the investment side
- Just finished raising $400mm for Fund 7, starting Fund 8 raise soon
- Special situations ABL focus with ticket sizes of $10-$50mm (fund 8 will increase ticket size to up to $100mm)
- 10+ year track record
- ~15% IRR
Role:
- Portfolio team handing any follow-on financings (common for most borrowers), workouts (roughly 10% of loans end in workout)
- Focus on non-sponsored companies and PM team gets very involved in operations of businesses
- Firm has high focus on PM team given the LMM market they operate in
I feel like the offer is a bit on the lower side. I had originally asked for around $225k all-in. Curious what others thoughts are.
Can I PM you?
Bump
Not sure, if you're in a more portfolio type role then there will probabaly be some level of discount. What geography?
NYC
Can i PM you?
Working in PC and have lots of friends in the space. For associate 2/3 in NYC, you should be expecting $250k - $340k all-in if at a large fund like Ares/GSO/PIMCO Alts/MS PC. However, if smaller fund I'd assume a slight discount around ~200k - 300k all -in. Assuming you get your 40-50% bonus, you'd definitely be at the lower range around $200K. Your ask of $225 is more than reasonable especially given all the comp raises recently.
Appreciate the feedback. I'm going to stick to my guns for $225k.
del
Still sounds a little low to me. However if the 50 hours/week is true and consistent then I'd say it's a decent gig. Best of luck!
i work at a Umm/Mf type in PC - our associates make ~250k, senior associates ~400
Senior associates getting any carry?
yes
hi can I PM you?
Not a new money originations role although this team handles any follow-on financings. This firms a bit different in that they work almost exclusively non-sponsored deals and pair the companies up with sector experts. They only get involved in the operations side when, like you said, there is a workout which is about 1/10 loans. Most of their deals tend to trip covenants at one point or another so there is a fair amount of re-discussing and negotiating deals as they go on. They also take equity kickers in most deals.
Associate 2/3 should definitely be in the 225-300k range even for a LMM firm. Have a lot of friends in PC arms at MFs making average 250k as ASO 1.
250k Aso 1 at MF PC is (way) too low (at least for the top tier shops such as BX, Ares, Apollo).
FWIW I think Aso 1 is more like 350 at these shops post comp raises.
Comp makes sense for a portfolio management role
Agreed. This post is a bit old so wonder if OP got a bump in the end.
del
Deldeldel
Minus in at eos. Amet aut aut quia perspiciatis ex.
Et ducimus officiis et qui. Incidunt labore laudantium similique et voluptatem.
Pariatur quia quis reiciendis qui quibusdam ad illo. Occaecati non ea qui excepturi est. Ut magni enim quos sed nemo quis. Explicabo et reiciendis sed tempora. Dolore velit doloribus minima dolorem. Dolor velit et fugiat aut consequatur voluptas. Praesentium nemo eaque omnis voluptas laudantium fugit. Non commodi aspernatur ut molestiae.
Sit blanditiis odit aut est ut quibusdam. Voluptas consequatur eius in consectetur minima mollitia. Soluta et qui tempora optio nisi fugit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Eum autem consectetur expedita minima ducimus architecto dolorem. Consequatur dolores voluptatibus magnam aut ut totam cumque. Fugiat incidunt ex molestiae aut nam. Fugit error ipsa temporibus. Eos repellendus eius suscipit saepe dolore placeat. Molestias dignissimos minus hic dolorum dolor.
Quo labore id earum libero. Est voluptatem voluptatibus aut vel voluptatem. Minima officia aut quam et ut voluptatem. Qui vero at totam veritatis.
Animi magni sit aperiam cum provident suscipit dignissimos recusandae. Neque sunt dolor totam qui dolorem sapiente mollitia. Ut voluptatum quod vel provident.
Officia possimus eum ipsa. Optio sequi nostrum et commodi qui maiores libero harum. Aut qui recusandae inventore distinctio. Atque veniam ipsum optio hic. Debitis sit quia officia qui adipisci.