Private Credit Endgame
We all know that preeminent reason each of us opts to join "high finance" is it provides a path of lesser resistance (thinking versus entrepreneurship or becoming a C-suite at a F500) to living an upper middle class / upper class lifestyle (if you end up doing really well for yourself and are able to ride out the highs and lows). At the same time, we're looking to maximize income while minimizing workload. I'm no different. Currently, working in private credit at a larger shop (think credit arm of a typical MF like, Bain, Ares, Blackstone, Apollo, etc.) that invests across the . However, I'd also like to consider what the potential outlook would be if I were to make MD/Partner at said firm. Questions:
Does anybody know the math on what a MD/Partner could make with carry? Does this carry typically get paid out yearly? What would the annualized income look like including carry + cash base + cash bonus + stock (work for a)? Please note, when I say Partner, I'm not referring to a founding partner or a head of the division or region, just a partner that's risen up the ranks.
Does this vary significantly between firms? For example, does Apollo still pay lights out on the credit side versus other firms (as is the general consensus for Apollo's comp on the equity side)? Does Bain also doing distressed work mean they get a larger carry pool (don't have anything to verify this but heard Bain has a generalist program at the junior levels - dk if that changes as you move up)? Does any company allow you to share in the carry pool on the equity side? Just random thoughts but wanted to determine whether one firm is comp'ing significantly more than its peers and why.
Are the hours significantly better on the credit vs equity side as an MD/Partner? And I understand that the difference won't be night and day but when you have a family, even an extra 10-15 hours per week is huge (that may be an additional 2-3 hours you could dedicate every day to family which is an important priority for me)
To sum, I'd like to lead a certain lifestyle when I have a family and do plan to be the major breadwinner. Would love some help in understanding whether continuing to work in private credit can help me achieve those financial goals without a side income. And yes, I understand that there is no guarantee that I'll be able to move up the chain or ever make partner/MD. But I do see it as an achievable goal.