Can anybody speak to the compensation structure of a loan originators (Associate Director, Director, VP level) for privately held debt funds? Base salary, % of fees, promote? We are balance sheet lenders, originating loans and contributing to a CLO where we hold the B piece. Fees are 1% to 1.50% of loan amount. Average loan size in the $2MM to $4MM range.
I work at a start up debt fund (one of three employees) in the Upper Midwest and have a very small network in this field. I'm up for a promotion so any information would help!
Thanks!
My firm would be base at $150 - $175k, no direct carry or % of fees but annual bonus based on production in the 50 - 100%+ range. This in in Chicago. The average loan size would be much larger though.
I work in a debt fund that recycles capital via CLO and this sounds right
What is the name of your fund?
sorry to hijack.
Is this all permanent financing. are there a lot of companies who buy 1-2 year bridge deal in the CLO market?
Most shops aren’t buying bridge loans in the secondary market - they are originating they loans themselves. These funds typically will leverage them through repo or a warehouse line, but they will tap the CRE CLO market to lock in financing on a non-mark to market basis
SOrry I wasn't clear. This is a new aspect of my job.
We are not a fund, but a well capitalized family office looking to syndicate bridge loans we originate. Is there any institutional money who will buy these loans as opposed to trying to raise capital for every damn loan we close through HNWI.
So I can sell these loans to the CLO market?
I get the typical perm b piece market, is this similar?
I had a few shops reach out to me to see if there are any loans for them to buy. I've also heard of many bridge lenders syndicating their deals through other bridge lenders. However I mostly heard about the latter pre-Covid and I think that the prior prefer deals that are already originated.
In terms of leverage for Bridge loans, it is a very tough marketplace. Most bridge lenders that are lending are typically doing so from their balance sheet while bridge lenders that use leverage are sidelined right now. CLO markets are also practically non-existent right now and from my understanding it is largely a larger institution arena.
Does anyone have any data points of how Compensation increases as you move up in the firm? VP/Director/MD, etc.? I am curious how this stacks up against compensation on the equity side of the business.
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