Is the comp potential significantly higher in Asset Management vs Underwriting (Balance Sheet, Agency .etc.)? I’ve heard both have great work/life balance, but are the hours longer in AM generally? I’ve looked at the CRE Comp document but I feel like most people inputting data are at the Analyst and Associate level. Wondering about more senior levels, as I’m trying to decide on a longer term career path.
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Some data points I know from experience. These are all west coast high COL areas.
1. Director level at very active life co lender (~10 years of experience) - Low $200s base, ~$300k-$350k all in
2. VP of AM at mid-level shop (~15 years) - $225k base, all in cash comp of $300k, some carry as well (unknown what this is worth on an annual basis, probably $50k)
3. VP of AM at small shop (8 years of experience) - $180k Base, $250k cash comp all in. $150k-$250k of carry
4. Debt Fund Director Level (10 years exp) - $400k all-in with some carry
I think AM is going to be busier in general, and probably has some very marginal upside, but I also haven't been around enough lenders to see their true WLB.
The other piece is that comp can be all over the place, especially for smaller shops.
Thank you for the detailed response! It’s really good to see some actual data points. I agree with your points though. It seems like underwriting may have slightly better WLB but lower upside. I understand that it really does vary from shop to shop.
I would say lending is going to have higher comp and worse WLF. Due to being deal flow driven, you don’t know when that next deal will come in which means more variable hours. Due to that, firms will generally need to pay more to retain talent dealing with the uncertainty.
Agreed with above. Underwriting is tied to live deals which lead to poorer WLB. Debt asset management is generally pretty relaxed tbh
I can’t speak on AM, but at least for underwriting at the small shop I work at, everyone is putting in a lot of hours, from our processors to our managing director. The hours tend to fluctuate a lot, but typically is around 60 hours per week. Granted, the company is younger and smaller, so it may not reflect a larger more institutional group.
I'm in debt AM at a fund. My base salary is the same as the origination team, the differences come in bonuses/carry. They tend to get larger bonuses/less carry and I'm the opposite, smaller bonuses and more carry.
The thinking being that the originators get paid when the deal closes (origination fee generation) and I get paid on the long term management of the deals while Borrowers complete business plans (fund performance).
I'm a VP and will be about 350k cash with another 100k in carry.
I'm terms of hours, I'm around 60 a week (my portfolio is transitional/value-add), but the originators work more like 60-70+ if they are live closing a deal.
Really, compensation isn't what you should be judging here though because you will be comfortable either way. In my experience it comes down to personality. Origination is a lot of relationship building/wine and dine type work that tends to be for more extroverted people. AM is more finance/reporting work and is probably better for introverts
I understand. Seems like origination overall has a comp package much more dependant on deal flow. I wouldn’t say I’m super interested in the wine-and-dine/relationship side of the business, although I understand any CRE position is going to require that social aspect. The nature of the business it seems. I’m currently on the debt underwriting side of the business (not production). I think balance sheet lending may be more appealing when compared to agency/GSE underwriting.
I really appreciate everyone’s insight. The responses have been very informative!
Balance sheet or fund lending will definitely be more interesting than agency/gse.
Do you enjoy the underwriting role? There is something to be said about being a career underwriter. I know one who loves the work life balance and since he is 1 of 2 underwriters for his group, still does well financially.
The only issue you may run into being a career underwriter or debt AM is that both of those are niche jobs in the industry. Harder to find the jobs, but once you land somewhere you love, they will try very hard to keep you.
How many people answer to you as a VP? Curious to know the depth of AM teams on the debt side. I’m in the middle of my 3rd year for an origination team, but my personality is much better suited for what you’re doing.
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