Q&A: Associate at Debt Fund in NYC
Haven't been on here in a while. I am 6 months into my first year as an associate at a $10b+ debt fund in NYC. AMA - anything is fair game.
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Salary range?
Associate level? Expect anywhere from $95-$120k base plus $50-100k bonus. All in would range from $145k - $220k. Don’t forget about taxes :)
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Spot on
How aggressive is the underwriting, what’s the main risk you guys look for
Pretty broad question. Depends on asset class, bridge or CMBS deal, etc. But we tend to lean heavily on basis, dark value if single tenant deal, stressed analyses on vacancy/occupancy, sponsorship, tenant credit. Happy to be more specific if you want to know more about UW process on a specific asset class / deal type.
Would really appreciate it if you could speak toward how you look at / size office lease up
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What's the process on finding the "dark value?" / What's the calculation?
did you get into this company straight from undergrad, or did you start off in dcm?
had a weird path here. dm me if you want more info.
Hours?
when i'm on multiple deals, im in the office from 8am-9pm. when it's quiet (not too often), get to office at 8:30am and leave at 7pm. don't let people who over exaggerate their hours intimidate you. if youre smart and know how to work efficiently you can get away with 12-13 hour days unless you work at a shop where it optically looks bad if you leave at 9pm (why would you want to work there anyway).
Bro you are working way too many hours for that salary
Is it hard to move to a private credit firm from a coverage banking background?
no idea
What are the levered returns you are trying to hit at your fund?
depends on asset class. all on levered basis -- multi/industrial: 12-15%; office: 18-20%; hotel: 20%+. Cost of capital is low due to volume and partners so we can achieve these high returns as the lender.
Those are pretty juicy returns. How much leverage do you guys use to get to those returns? I imagine you’re leveraging up your loans 60% or so, unless you’re taking extremely risky positions with a mix of current and accrual pay high up in the capital stack.
in terms of recruiting, how do you view laterals from investment arms of insurance firms?
Curious about exit opps (worried about career progression and training) into traditional fixed income shops coming from an insurance company
What are some of the most oddball / nonsense addbacks, definitions, covenants, pricing, legal doc changes, negotiated points, etc. you've seen?
Could you explain how a typical CMBS deal is done at a high level? For say, retail a mall or shopping center,type of deal.
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