Title speaks for itself here, but I am hearing some bonkers comp figures from friends in private credit. Some firms seeing 2022 comp up 30-40% with up to a 25% salary increase at the Associate, Sr Associate, and VP level. Lot of fees generated this year for comp.
Let the anecdotes begin
Following.
Following
If i remember come bonus season (April) ill add
Following
Interested
Thinking bases will be raised to 175 for associates, bonuses should be extra thick this year. Will not have comp numbers til new year but have heard will be phenomenal
What type of firm / strategy?
sounds like big direct lending - think kkr blackrock owl rock hps adams street
Big firm, target deals of ~L + 700, for what it’s worth though, everything in “mega fund land” of funds of 5 billion or more are raising comp this year
following;
Would a 15% - 20% increase in total comp be considered bad given the busy year?
What I mentioned is the highest level I had heard. Based on a massive database that Litquidity put together, private credit comp is up an average 17% on average and 15% median at the Sr. Assoc./ VP level. So no, I wouldn't consider that "bad" at all. That's on market.
Can you drop a link to the database?
Have also heard private debt/alternative credit fundraising has been on fire lately. Senior with a full time offer at a large ($100B+) fund in a special sits/distressed credit role. Starting is 100k with target bonus around 50k. Seems slightly low compared to the associate and VP bumps but interested to hear other analysts's numbers.
any chance you could drop ur username so I could PM you? Also a senior with similar job
What numbers have you been hearing for the analyst level?
Very similar to what Analyst 1 in HF - Other said
Got the exact comp at analyst level for a PC firm (smaller fund fwiw)
can u pm me?
can you PM me
Had c. 50% YoY comp increase from AS1 to AS2 but decent amount of that was due to being severely underpaid the prior year.
Probably am not ahead of MF Private Debt shops.
can you say your numbers anyway?
~200 to ~ 300 all-in give or take 25k.
First year Associate at 1B+ AUM Special Sits/Opportunistic Credit fund (Non NYC/SF) and accepted the offer for 90k base and 40% bonus target. Is this street comp? Would also mention that its 50-60 hrs and superb culture.
I'm at a pension fund. Base is 140K and minimum/target bonus is 40% for a senior associate for what its worth
hours are also about 50 a week
Nice...
This is far below street, even in a non-NYC/SF seat. First year associated at a $1b+ AUM special sits firm should at least be $200k.
You are incorrect. I can literally name drop 5 funds (2 NY, 1 Chi, 1 SF, 1 LA) that are similar size and were paying 100 base and 40-60% bonus in total comp at AS1 level. This is pre IB pay bump hires so class of 2020 hires..
$1bn aum implies that the fund sizes aren't very big, and 50-60 hours feels pretty light. However I'd expect the bonus target to be closer to 75-100%
Still.. 50-60 hrs for that comp post banking? That’s the same as corp dev / strategy / less than GE / VC
edit
Asso 1 at a 6bn AUM DL/Special situation fund of a large asset manager. 150k base bumped up to 175k next year. Target bonus 100%
Is there carry involved as you move up the ranks? How do you find your earning potential compared to private equity peers?
Is there carry involved as you move up the ranks? How do you find your earning potential compared to private equity peers?
Is there carry involved as you move up the ranks? How do you find your earning potential compared to private equity peers?
Check the LitCap: https://docs.google.com/spreadsheets/d/1ShxNiwyMepwNVkLYvVpXH6IkAEQ5k6G…
Hint: if you didn't already know about this, you're out of touch my man.
Can you pm me? Good to have datapoints for comp discussion we’re having. Happy to share past comp as well
Awesome
Damn that's good, hope rest follows
Bump
Following
Not at a private credit shop but in case helpful - had an offer to start as an associate at one of the largest BDCs. Comp was $250
Thankfully you didn’t take that offer from Prospect.
As in dodging a bullet?
Can you list off a few BDCs? Always see the term get tossed around but never really received exact examples of a BDC.
Here are your biggest BDCs.
Appreciate it. To the extent you know, what are the major differences in working for a BDC vs. a private credit firm? I mean this in terms of comp, upward mobility, hours/lifestyle and macro outlooks.
I can't speak to those details, as I've never worked for a BDC. However, I can say that you're comparing apples-to-apples. BDCs can be public or private, but they are mostly affiliated with private credit funds. For example, Oaktree Capital has several different BDC funds. I shared a link below from Monroe Capital's website (another example of illustrating the differences in fund types to prospective investors), but they are effectively the same work.
Business Development Company (BDC) Funds Overview | Monroe Capital LLC
At some of the larger firms you're not necessarily working "for" a BDC, it's just another vehicle to place assets.
Definitely on the lower end but not unreasonable
Diversified private credit
AN2 last year - 215k
AS1 this year - 250k
AS2 next year - guided to 280k
Jesus what shop is this? Blackstone?
Isn’t this around market for an large fund like Golub, Oaktree, Sixth Street, KKR, Ares?
BXC was at ~$300k ASO1 (pre comp raise).
Bump
Anyone have vice president / senior assoicate numbers?
I've heard ranges for our SA / VP seat:
- 200k base.
- 150k bonus.
- 150k dollarized carry.
Is this a smaller shop? A bit lower than I would have expected at the mid-level.
This seems to be on market for anything below MF.
.
At a $1bn mezz fund (we have other strategies). ~$220 all in. Got carried points worth ~80k as well on top of bonus which should happen every year during the investment period.
$500M AUM non-NY/SF/LA, but very lean team with 5 investment professionals. 1st year VP.
$170k salary/ $170K bonus with 7-10% raise TBD. 4% carry hasn't hit yet. The pay bump is below market but it's a pretty nice gig with solid upward mobility and a great group of folks.
Is this for ASO1 equivalent?
Edited to reflect VP.
Interesting data points on this thread. I received MF Credit offers and was guided to ~$300k all-in for Associate 1. This is not for special sits/distressed groups, but for capital structure flexible groups doing mostly sponsor financing. No carry or co invest, but total comp seemed to scale nicely YoY. Would like to see some Senior Associate / VP numbers as well.
for MF, SA/VP role can easily get in the $225k salary/ $225k bonus before carry.
What is a realistic annualized carry expectation
Should be closer to 500k (or higher depending on shop) for VP1s (in line with PE). Numbers I have been quoted are lower on base but higher on bonus (>150%).
Do MF Credit teams solely recruit from IB for associate roles? Interested if it would be possible from an analyst role in private credit with flexible mandate to get to a MF Credit team and what that process would look like
They're probably flexible. Lot of ppl come from LevFin. Most important qualifier is credit experience.
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Its a bloodbath out there right now for private credit juniors. Many places are dropping down to 1y experience for associates, etc. This might make recruiting in a couple years pretty tight if credit markets tighten a bit, so not sure if what works now for recruiting will work in 2 years.
Many places? Which shops are these? I’ve only seen one that would consider hiring an associate with 1 year’s experience.
Following
Has anyone received bonus numbers at the Senior Associate / VP level?
following
You're not wrong. Golub Capital senior associates raised to $175 base, got a midyear bonus of ~$50k, hoping for at least 1x bonus.
What about Associate base and bonus at Golub? Thanks
I've heard incredibly mixed views on WLB at Golub. Willing to share any insight on what it looks like at your level there?
Also - any information on VP comp would be helpful as well. Had heard that ASO 1 base comp was raised to $160 on another forum. Maybe wrong - $5 bump in base per year from ASO 1 to Sr. ASO doesn't sound right.
What is typical ASO1 base comp in PC nowadays? 120-125?
120-150k
Received offer from new DL platform a few months ago, new group formed under a large AM ($100Bn AUM). Senior assoc comp package was $125 base + 100% bonus target. Declined offer
I'd say this is pretty significantly below market if the fund size had a B on it
yup, they benchmarked to MM shops in Chicago. would not move on 125 base so i walked
What base + bonus range are you looking for? Was this for direct lending or opportunistic credit?
this was direct lending. was looking for ~150 + 100% as a floor
LMM Distressed Debt / special sits Private Credit fund. Around $750mm AUM, should hit $1bn when new fund closes this year.
Associate 2 on the Portfolio Mgmt side
Base: $140k
Bonus: $75k
Should be promoted to Senior Associate towards the end of 2022 which would include pay bump and carry. Probably a bit on the lower end of the comp spectrum but I usually work around 50-55 hours a week (occasional 65s during crazy periods). Fund is growing at quite a fast pace and we charge 2/20 so hopefully carry is meaningful.
Can I PM you a couple follow ups?
Sure, i pmed you
Can I PM you as well?
sure pm'ed you.
This is not an optimal comp: hours ratio. You can move to the investment side at MM shops and easily clear 175/175 salary/bonus as a VP with some carry.
Probably but i just got here. Plus I get fee free coinvest on a portfolio yielding 35% IRR on a levered basis. And im learning a fuckload
Hey, mind if I pm you as well? Thanks in advance.
Sure, pmed u
Hey can I pm you a few follow up questions?
Sure pmed u
Mid year update on this,
Got a bump to $160k base, expected bonus of $80k-$96k. Was told I am on track for Senior Associate by YE with expected base of $175k and 50-60% bonus plus $150k or so of carry.
I actually view this as market for a fund of that size for a portfolio management role. Would think investment team makes more, but also works more.
True the inv team does make a bit more, i think up to 75% bonus rather than our 50% bonuses in PM. Were quite more involved than a typical PM team given the distressed nature of our credits, have a few minority equity investments as well where we hold 25-49% of the equity.
Market level Bonuses should be 100% of salary unless you are in the MF salary category. My $.02
sdf
Thanks for all the feedback, folks. Following up on a recent post, I submitted all datapoints given to me to the LitCap Survey:
Hey - I submitted all these results to the LitCap survey: https://docs.google.com/spreadsheets/d/1ShxNiwyMepwNVkLYvVpXH6IkAEQ5k6G…
There were too many Anon submissions so it made the most sense here.
My 2021 figures: Salary and bonus up 9%. A little disappointed considering the big direct lenders increase comp 15-20% with bonuses up 20-40%... however, I am at an opportunistic fund and we focus on junior capital and didn't deploy as much capital as the direct lenders... So goes life.
Cheers
Data point:
Work at large DL shop, first full year post stub
Overall seems average for industry, was expecting more though tbh
this seems good / higher than expected though not too familiar with the space. you think it is typical/on par with most big DL shops?
If this is effectively first year associate (first full year past stub) this is higher than 95% of MF PE. Very far off of market and I wish I was paid that.
if you have this offer and hours are anywhere to close to normal credit hours take it 10 / 10 times if more than you make now.
Bump
How does comp scale as you progress in your career in senior/unitranche focused lenders vs. more opportunistic/junior credit/structured equity shops?
Bump
First year associate at a moderately sized direct lender (mid single digits billion AUM), joined after ~2.5 years of banking.
Base salary: $125K last year jumping to $150K next month
Cash bonus: $135K on a target of $125K
Carry: None
Is bonus projected to remain in line at 100% after base raise?
Hey man, could I PM you to discuss this?
Any insights on the base salary and target bonus of 1st and 2nd year analysts at credit shops like KKR/GSO/GOLUB? Because I feel like I am getting shafted!!
Following
Direct lending senior associate (not NYC) that just got promoted to VP. Salary going from $140k to $165k, bonus was $170k with a go forward target of 120% of the new base.
In my experience, this is pretty in line with non-NYC year 1 VP at a smaller AUM shop. Bonus % of salary is a little higher though, so congrats!
Thanks!!
Did you secured this offer via the HH? CPI, DSP, Oxbridge and etc? Currently 4 month away from completing my 2 years as Associate in Direct Lending at a LMM in Midwest (Not CHI) and having a tough time getting interviews for MM DL as Senior Associate in NY/Bos/LA. Any advice?
I’ve been there for a while, but went through a no name headhunter. Just keep applying, lots of places are hiring
Hey can I pm you some follow up's to this??
Yeah DM this account
Anyone know AN1 comp at BX credit?
$110k
Is bonus 70-100% of base?
For reference - signed with an MF firm earlier this year (one with a more pronounced PE platform). Associate 1 offer is 150 + 150 target. Was told that most credit firms made a killing last year so target bonus stretched from 100% to 110%-115%, although this firm in particular tends to rewards top bucket performance with an extra 8-10% on the YE bonus anyways. $300 all-in is now market for MF firms - those were my expectations going into recruiting and turned down an offer from another large player that was offering ~250.
This senior only shop? What did they tell you about lifestyle?
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