LO Credit (HY/LL) Sr Analyst Comp Packages
Trying to get a better benchmark of long only sr analysts in credit (HY/LL) - think 8-12+ years total experience. There has been a lot of wage inflation recently at some firms so trying to get a handle on both salary and bonus (also cash/stock/deferred). Curious about large firms, such as a Pimco, Oaktree, Goldentree, etc. but also across the spectrum to more mid-sized firms (5-10bn) or even smaller firms (sub 5bn). Can also be more CLO type shops too. This site has great info on jr comp but less info on more senior levels. If someone has sr anlayst equity numbers thats cool too, I'm not sure if there is a large delta or of credit and equity guys get paid the same. Thanks.
anyone?
bump
Coming up on 5 years post MBA at LO focused on HY / LL, all in expect low 400s this year vs high 300s last year
Cool, thanks. OP here - What size aum range, tier 1 or lower city, more credit only shop or larger asset manager or insurance? Do you know the trajectory as you continue to gain years?
I'm 400 at a 2-5bn size fund, tier 1 city. Wasn't sure how out of context that is. I've heard that 500-600+ (or even more) is more standard but don't have data points to support. Always hard to figure out if what you hear is true. Seems like we are pretty similar so while everyone wants to make more, at least gives some comfort that others are in a similar range.
bump
If you haven’t seen it already there is a solid comp survey from Odyssey Partners for performing credit - happy to send you (or anyone) the deck if you PM me your email
Where are 1st yr VPs in LO / liquid credit coming this days? Tier 1 cities
$425k sound about right?
Following
400-500 sounds right for VP level (5-8yrs) and 600-700 at Principal/Director level (8-12yrs). Equity/carry can push higher if applicable, but amortized over long horizon. This is more like a BlackRock/Oaktree type place which I would use as an index. Can be +/-100-200 based on your firm culture and your specific negotiation when you signed (smaller/HF style firms pay better, insurance/mutual funds lower).
Bump, any info on PIMCO. Do they pay higher than street?
No, PIMCO is well-known to pay below avg due to Newport Beach location, poor comp culture, and generally tight budget. Each year, senior PMs have to fight viciously with CEO/CFO to secure a large comp pool for their team - this means hammering the table, emphasizing their returns/value add, justifying their seat. Don't think that's a true meritocracy, seems more like Succession to me.
My understanding is this year they had to find external recruiters because their historically low budgets, low-balling and underpaying has resulted in higher turnover and difficulty attracting talent. It's possible they are NOW paying market (or a premium) due to the attrition. However, I'd be wary of when the job market turns back to employers - they won't be so generous then...
POST MBA comp scale for PIMCO:
1. Mid $200s 1st yr
2. Low $300s 2nd yr -- big jump because lots of 1st yr attrition
3. High $300s 3rd yr
The max budget on their associate-level private credit team is $250k -- they've been hiring LA bankers and new grads though, so maybe <$175-200k for them
Interesting insight. Do you know how comp continues to scale post the first 3 years, and longer term.
Is the culture really that cheap? The levels of fees must be absurd but I guess people are greedy. Also, Newport are is HCOL so weird they'd use that as a reason to pay less.
Can confirm seasoned SVPs at PIMCO
in account management (6 to 8 years post MBA) making 600-800k TC. Can't imagine portfolio managers making less.
This is false lmao. Absolute waffled
2021 COMP SCALE - CLOs (post investment banking program, no MBA, no CFA)
Note: these are higher than you might remember from years ago due to recent raises, inflation, talent retention efforts seen in 2021
Assoc1 - $230k
Assoc2 - $260k
Assoc3 - $330k
VP1 - $400k
VP2 - $450k
VP3 - $500k
SVP1 - $540k
SVP2 - $560k
Please comment below if you disagree. Upvote this if you agree
How big of a manager? Were you in levfin?
$25-35bn manager. Yes levfin previously.
I work for a large well-known LO and damn I wish I my company paid as much for Aso1 as your firm does. Work in Equity tho. That's way higher than my firm pays
I recommend doing deeper research on your job and what peers are making. Then ask for a raise or bonus boost. If all fails, start interviewing. Market pay is nothing more than what a buyer or selling is willing to pay — companies that comp below market will have attrition, employees who are overpaid will find themselves axed earlier or replaced with someone cheaper/younger. Free economy at work
Also if you work in equity - what type of equity? Low fee ETFs will pay lower due to fee structure and commoditization of work (fidelity, etc). High fee hedge funds will pay higher due to higher fees, unlimited upside, pod structure, swift layoffs/lack of job security (e.g. Citadel)
How many years of banking do Aso1’s generally enter your firm with?
2-3 yrs
Thanks for the color - this is in line with the recruiter comp survey for performing credit. Is this NYC? Trying to determine location discount
Nyc/La/Sf
What is the level that post MBAs come in?
bumps for SVP should be higher but may be capped depending on size of firm
Do you mind sharing what the years of experience for each of these levels would be?
5 years exp, 150k base, 50k bonus. HY/LL/some IG sector focused. Large shop.
seems awfully low. should shop around given strong market for young talent
strong brand name and i've getting some junior PM responsibilities. aware that it is pretty low. how much would you guess im underpaid by?
LOL we could work at the same large shop, or maybe many firms are hard lowballing
On average - do people at fixed income funds get compensenated less than equity in LO AM?
Yes
What's comp like for UK. Performing credit, at 3-5YOE mark and 5+ YoE mark?
Any recent grads (1-3 years of experience) interested in leveraged loans (broadly syndicated 1L and 2L loans) at a top-tier firm? Industry generalist. We're hiring in LA and Dallas (only, no remote work). Comment below with your interest and we can set up a call to discuss
Dude… sorry but no such thing as top tier fund with LA/Dallas footprint. If you’re talking Canyon, definitely tier 2 at this point. Tier 1 is Ares, Apollo, KKR, PIMCO, maybe Oaktree
Large, lifestyle oriented shop ($15-20B AUM) in NYC, 7 years experience and CFA expecting low- to mid-300s this year. Equivalent of Assoc3 basically.
what kind of lifestyle? how many hours/busy days a week outside of earnings? LO credit comp seems very low. rarely seeing anything/anyone breaking $400k
Should have clarified--very relaxed lifestyle, 9-5 (though I see senior analysts running for the door around 4:30). Morning meetings at 9:30am, never expected to work on weekends. PMs use the building gym during lunch or late afternoon. WFH two days a week. Summer Fridays. VPs definitely break $400k, 8-9 years experience on avg. Fair to note that comp across the industry has come up significantly in the past several months
Same experience here at a large LO shop in FI. Heavy emphasis on “WLB” as a justification but it seems out of sync with the rest of the industry.
CLO/HY junior research analyst at large-ish NY credit shop helping senior cover his 80-ish positions (will also provide opinions/light assistance to Direct Lending team and Distressed team for names in sector).
$150k Base/$150k Bonus
Had 3-odd years of Sell Side Research after undergrad no MBA
Basically an 8-6 culture but will need to work an odd 9pm night here and there.
Much better WLB than sell-side for decent money and great office perks. I have no idea what the senior guys are earning.
What does base comp look like at HY/LL shops? I’ve heard 150-170 is typical for performing credit shops. Can anyone verify?
What level? I'm 215, sr analyst
Sorry should have clarified. For a CLO /performing credit analyst role (5-6 year credit experience + other relevant financial experience) what should I expect at an average shop?
I thought base tops at 200 for PMs but glad to hear that’s not the case!
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