Know there have been other threads about this but have seen conflicting / wide bands of compensation. What’s the typical ASO1 all in for private credit / direct lending at MFs and MM funds? How does that usually progress into the VP years? Would love to have information as of 2022 for negotiation purposes for an offer im expecting in NYC
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I have heard $150k base + 75% bonus is considered market for an Associate. This is applicable to most well-known leveraged lending focused private credit firms in tier 1 markets.
Some firms will be slightly higher ($150k base + 100% bonus), but it depends if they do exotic structures and get deeper in the capital structure.
On the same hand, like you said, it can be lower if you’re looking at a senior-only lender. I personally have seen numbers for a senior only MF-backed lender at $110k base + 75-100% bonus target (March 2022).
As a rule of thumb, all-in comp for an ASO1 will range in a band between $200k all-in on the low end, and $300k all-in at the high end. Most seem to sit in the middle somewhere.
There’s a mostly senior arm of a MF that paid 300-315 all-in last year before base raises fwiw. The idea that comp is directly tied to your position in the cap stack (particularly at the junior level) is pretty inaccurate. Comp is far more dependent on the firm at the associate level rather than the seniority of your investments
Good to know, thanks. Those numbers are pretty good.. I’ll take your word for it on the junior level comp not being affected by where you are on the capital stack. It makes sense that higher return targets translate to higher comp, but totally understand why you wouldn’t see that delta at the Junior level.
Even at the senior level I doubt it varies much based on seniority. It depends more on AUM than seniority in cap structure. Firms can be making billions at large senior DL fund just from management fee and a small VC fund can be making nothing on $10MM AUM even if you generated tons of alpha.
For the $220 ASO1, is that in a Tier 1 city as well? Specifically NYC? Seems really low for a MF backed lender
Encina / Midcap?
What are hours like at these places? Have heard mixed things
When people quote comp numbers, is this full year or stub? i.e. $250k all-in on a full year, but with half-year stub it'll be a bit below $200k?
Yes that’s full year but if you’re stubbing bonus consider only thinking of base for the months you actually work as well
Is it common to go from MM DL to MF Credit/DL or credit HF?
This might be a dumb question, but does compensation at Private Credit Funds typically include a carry component?
Yes, usually starts at the VP level
Bump, looking for any additional 2022 data points
Bump
There’s an Odyssey Partners private credit comp survey that has some good data points and color - happy to send it to folks just pm your email
PM’d
Pmd you
Thanks sent you a pm
PM, would appreciate it
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Received an offer for an Associate 1 role from a relatively well known BDC doing the typical senior secured sponsor stuff.
180k base + 60-80% bonus. Coming out of a 2 year IB analyst program and had some exposure to M&A and DCM. Interned in corporate banking as well, so I had a good feel for the overall structure of the credit market and could speak to it decently.
PM’d - assuming you want to preserve some anonymity lol
Sweatshop type fund? This is probs highest all in I’ve seen for senior secured only
That's in-line/better than most MFs
ASO1 - 120 base / 100% bonus in a Tier 1.5/2 city at a MM senior-only shop. Was essentially told comp used to be 110 base + 100% bonus, so believe the extra ~20k all-in was the "COVID bump". Guided towards base going up $10k per year, and bonus comps up +25% of base on average (depending on firm performance of course).
Believe base is in-line with market for this type of shop, but bonus feels slightly higher
I’m sorry but what is considered a tier 1.5 or tier 1.5/2 city
Chicago
Signing bonus?
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