How long to stay in loan asset management?

I've been at this job for 3 months now and feel like I've learned everything that I needed to. Extremely bored at work and not much to do. I'd like to become an asset manager or some kind but is 6 months enough to find something else?

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Comments (43)

Jan 24, 2022 - 9:38am
mrcheese321, what's your opinion? Comment below:

You haven't even scratched the surface in Debt AM in 3 months, especially as an analyst. I've been in Debt AM for over 10 years and I've just gotten to do some of the more interesting things like NPL workouts and foreclosures. In terms of comp: at the high end of the range as a head of debt asset management, you are looking at 500k - 750k. I lead a group and am at the lower end of that at 36. Not too shabby for the work life balance.

I personally wouldn't leave prior to a year, because it sounds like you've had at least 2 jobs in the last couple of years and you don't want to be labeled a job hopper. I know that there are a lot of people that say it doesn't matter, but if your group head is older (which there are plenty of), then it could be a problem.

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Jan 24, 2022 - 9:38am
mrcheese321, what's your opinion? Comment below:

You haven't even scratched the surface in Debt AM in 3 months, especially as an analyst. I've been in Debt AM for over 10 years and I've just gotten to do some of the more interesting things like NPL workouts and foreclosures. In terms of comp: at the high end of the range as a head of debt asset management, you are looking at 500k - 750k. I lead a group and am at the lower end of that at 36. Not too shabby for the work life balance.

I personally wouldn't leave prior to a year, because it sounds like you've had at least 2 jobs in the last couple of years and you don't want to be labeled a job hopper. I know that there are a lot of people that say it doesn't matter, but if your group head is older (which there are plenty of), then it could be a problem.

  • Research Analyst in AM - Other
Jan 24, 2022 - 11:13am

Not OP but why do you find it hard to believe someone in FI AM for 10years is clearing 500k? Assuming at that point you are a Senior Analyst or a PM then yes you can clear 500k easy. Just assume base is 150k, bonus is 2-300k and you can co-invest in some of your deals too, clearly takes you over this mark very easily, I am unsure as to what you find hard to believe?

Jan 24, 2022 - 12:27pm
mrcheese321, what's your opinion? Comment below:

I'm a VP at a debt fund, so I'm Lender side AM.

225k base, 40-60% bonus, 60-70% deferred/carry.

Total is 510k plus the max employer contribution to my 401k, so all in around 550k.

What most people don't realize is that the servicing industry is huge and very lucrative. For larger, high touch loans, lenders pay between 15k and 25k a year for normal servicing, and even more if they delegate AM responsibilities or do workouts. For the small balance stuff, it is 3500-5000 a year.

My portfolio is about 450 loans, which is about 375 small balance and 75 large balance. We pay about 3mm in servicing fees a year plus servicers make additional money on draw fees, one-time setup fees, etc. The seniors on my servicing teams are all making 250k+ and live in LCOL cities.

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Jan 24, 2022 - 6:37pm
FishOil099, what's your opinion? Comment below:

Do jobs nobody wants to do and you'll get paid. 

Everyone wants to be an acquisition person it's sexy. There's also 100 guys that can back fill you since the technical requirement to do real estate is super low no matter what you do. 

Nobody wants to do debt AM. Super hard to find a qualified candidate to fill a role since the talented people don't want to do it. 

  • Manager in RE - Comm
Jan 24, 2022 - 7:36pm
mrcheese321

 In terms of comp: at the high end of the range as a head of debt asset management, you are looking at 500k - 750k. I lead a group and am at the lower end of that at 36. Not too shabby for the work life balance.

Dang you're really killing it! I'll add that there's actually a pretty good-level of job security too. Work increases whenever the economy trends downwards

  • Manager in RE - Comm
Jan 24, 2022 - 7:26pm

are you really sure there's not much to do and you think you've learned everything you need to? 3 months is not a lot of time to truly learn everything or at least understand how everything works on that side of the industry. Give it at least a year until you really feel like its time to jump ship. Jumping too soon might not benefit your career take your time with it. If you're looking for challenges talk to your boss and see what other projects you can take on. before you leave add accomplishments to your resume, to show that you're someone who adds serious value and skill to your team. Don't make it look like you showed up to work, did your job and left at 5. It's not going to be good for career building. There's nothing wrong with holding a 9-5 job, but most of us on here are very type A and driven to get to the top and that doesn't come without its own challenges or hurdles you need to climb.

Jan 24, 2022 - 7:39pm
crepassion96, what's your opinion? Comment below:

Hey thanks for your response. Question: when talking about accomplishments, what are examples in debt AM I can put on my resume? Like maybe managed an impressive certain amount of loans or something? Not sure what accomplishments I will have in this role.

  • Manager in RE - Comm
Jan 24, 2022 - 8:09pm

I would look at certain processes which aren't so efficient. Figure out where you could step in to improve it. Servicing usually has a ton of properties to deal with and there are many aspects that need to be reviewed but your team will need a quick summary or building certain reports, and this is where modeling skills can come in. There's always plenty of ways to help improve things

  • VP in RE - Comm
Jan 25, 2022 - 7:15am

I'm probably biased because my first job in the industry was at a large bank that only did core mortgages, but the people in AM were some real mouth breathers… and if the exec I remember from there was clearing $700k then fk me sideways! 
 

thinking about it more - I follow how outside core it could be an interesting job. People I interact with on our construction loans (as borrower) definitely aren't as low caliber as the people from my first job 

Jan 25, 2022 - 1:19am
mrcheese321, what's your opinion? Comment below:

I don't know why people think this is so outrageous. The set of funds I work on charge between 50bps and 100bps as an AM fee. Average is probably like 60bps since the high paying funds are smaller. I manage 5bn in equity which is 30mm in fees collected yearly for my portfolio. Pretty easy to pay me and everyone else with that kind of fee income.

One of the life cos I worked at had a 35bps AM fee on a 30bn debt portfolio. That team is about 45 people between origination, AM, PM, controllers, and operations. 122mm in fees means you can pay a lot of people a lot of money and still turn a profit.

  • Analyst 2 in RE - Comm
Jan 25, 2022 - 9:30am

mrcheese321

I don't know why people think this is so outrageous. The set of funds I work on charge between 50bps and 100bps as an AM fee. Average is probably like 60bps since the high paying funds are smaller. I manage 5bn in equity which is 30mm in fees collected yearly for my portfolio. Pretty easy to pay me and everyone else with that kind of fee income.

One of the life cos I worked at had a 35bps AM fee on a 30bn debt portfolio. That team is about 45 people between origination, AM, PM, controllers, and operations. 122mm in fees means you can pay a lot of people a lot of money and still turn a profit.

Just to be clear are you basically a PM for a Debt Fund? Because that's what it really sounds like. Which if that is the case, then no doubt salary sounds right. And by no means am I saying you're lying but I think there's some confusion in this thread. Loan AM to me, is a separate team from PM that basically just does processing and managing the actual life cycle of a loan during its maturity, handling investor administrative requests or what not. Not dealing with strategy, approval of what loans go into the fund, and investors. Sounds to me like you're doing Debt PM vs actual Loan AM but I could be wrong..

Jan 25, 2022 - 10:59am
mrcheese321, what's your opinion? Comment below:

I handle everything having to do with an asset from the day it closes to disposition. That means anything administrative internally, investor reporting/meetings, financing, borrower requests, etc.

I will say my portfolio is fairly unique. We play up and down the entire risk spectrum so it includes small balance commercial deals all the way to large balance ground up construction/pref equity.

I don't sit on IC (my boss does), but I'm both a PM and an AM (AM sits inside PM at my shop), so I'm a pseudo hybrid.

  • Analyst 2 in RE - Comm
Jan 25, 2022 - 11:07am

Gotcha. That makes sense then. 
 

I think as I noted, there seems to be some misunderstanding here in this thread that you're comp is for just Loan AM. Seems like your're salary is inline with that of a PM who handles AM as well. That is a big difference relative to pay scale.

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  • Analyst 1 in RE - Comm
Jan 25, 2022 - 11:20am

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Apr 14, 2022 - 4:45pm
Prisoners_Dilemma, what's your opinion? Comment below:

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