MF & UMM Private Credit Associate comp/hours

Hi monkeys,

I may potentially join a MF (Apollo/BX/KKR/Carlyle are the firms I'm including here) or UMM private credit investing team. I'm looking for base/bonus breakdown that I could expect as a 1st year associate, and hours that I should expect to work. Particularly interested now that IB associate 1st year comp at BBs have been bumped to basically match pre-covid PE assoc pay. Please state if you're at a MF or UMM and what year you are.

Thanks!

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Comments (17)

Most Helpful
Oct 15, 2021 - 11:09am

Apollo - think this is something like 350 all in, expect heavy, brutal hours

Kkr- 275 was one datapoint have heard. Don't think they lead a lot of deals but they do take a lot of chunks of stuff. Assume hours are a lot but less than buyout

Carlyle - 250 datapoint have heard, would say have not heard anything they've done recently. Sounds like it's been a total shitshow past two years. Maybe they do a lot of deals where they take pieces of their own deals? Honestly I have literally never seen them in a deal

Bx- 275 datapoint. Less hours than you would think for blackstone, relatively up tight people but they do a ton. All staffings are cross fund so have some lower yielding stuff and higher yielding.

  • Analyst 2 in IB - Gen
Oct 15, 2021 - 12:14pm

OP here. Appreciate the data points. Do you know how old those are? BB IB comp now at ~175k salary, would beat all of those after bonuses including Apollo at some BBs, not even including EBs (which can expect 400-450 with the new associate salaries at most of them being ~200-225k). Thought KKR and BX were higher even pre-COVID.

And can you give numerical ranges for the expected hours of each firm? I know just from this site and word of mouth that Apollo Credit's hours are even worse than their PE unit. The other groups I'm not sure of their hours.

  • Associate 2 in IB-M&A
Oct 18, 2021 - 11:26pm

One thing to be cognizant of is that PE As and IB As may not be like for like when comparing a bank that has a 3 year analyst program. For example, EVR associates definitely make more than PE associates but they also have an extra year at $140k senior analyst salary + bonus so the right MF may pay more

  • Associate 1 in PE - Other
Oct 15, 2021 - 2:12pm

Thanks a lot for this.

Anecdotally heard $300k for BXC in line with BX's other main investing strategies. Will be interesting to see if they raise comp as this seems overdue by now.

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  • Analyst 1 in IB - Gen
Oct 15, 2021 - 3:33pm

Received offers from MF Credit shops similar to those listed above on-cycle. Target all in comp $300k for Associate 1, bonus scales higher from there. Think hours differ by group or strategy, but I'm expecting 60-75 on average, but who knows.

  • Analyst 2 in IB - Gen
Oct 16, 2021 - 2:41pm

Offers as in multiple? Can you state base/bonus breakdown, any possible sliver of carry? Can you state which firms, and were both of them for 300k target?

Are both of the salary offers less than your banking salary?

  • Associate 1 in PE - Other
Oct 16, 2021 - 3:20pm

Associate 1: $120-130k base + $170-180k bonus + levered co-invest. carry from VP onwards (after 5.5-6y total experience), so essentially in line with other main investing strategies.

  • Analyst 2 in IB - Gen
Oct 16, 2021 - 3:31pm

Wow, I feel like that's really low for a MF, thought 1st years were at ~150+.. I wonder what MM or UMM pay on salary.. That's a 50k discount on salary to new BB IB associates. I'd rather have more of my comp fixed than variable. Can anyone else confirm?

  • Associate 1 in PE - Other
Oct 16, 2021 - 3:34pm

This is for a MF that is known to pay low fixed comp but accordingly higher bonuses. Note this is pre a potential raise. Most MFs (incl. this one) are still subject to pay raises which I think will certainly come sooner or later.

  • Analyst 2 in IB - Gen
Oct 17, 2021 - 9:09am

hmm Carlyle maybe. I've seen on other threads that some UMM firms have raised comp in response to IB raises, woulda thought MFs would have been the first to make a move here since their feeder pipeline (BBs/EBs) would be most affected..

That's not gonna be sustainable. They should act quickly. There'll be an associate exodus or more likely just less talent going for PE/PC associate roles. People will just stay in banking til VP and make the jump when they can get carry. Something's off when an EB 2nd year analyst is making just as much than a MFPC first year assoc.

  • Associate 1 in PE - Other
Oct 17, 2021 - 9:37am

I do agree to some extent, and I am sure MFs will need to raise across the board. From what I hear it is in the making at all major players that haven't done so already (esp. BX, KKR).

However, I think they can afford to wait for the simple reason that investing careers are still more attractive than those in banking, even if you get $50k less as AS1 versus equivalent at an EB. That is not only because actual work is more interesting and rewarding (most of the time), but everyone by now knows that MF PE/PC pays off from a long-term career view. You are reasonably close on base + bonus already, and even more so once raises have come through, but people seem to underestimate the ceiling in IB, while shit gets real once you make it to VP on the buyside (I know it takes long to vest, but still you will have millions of carry at work at some point).

  • Analyst 2 in IB - Gen
Oct 20, 2021 - 10:46am

I sure hope so, I'm contemplating making a jump now, but have a family and comp is the biggest driver for me here in place of giving up WLB

  • Analyst 1 in IB-M&A
Oct 16, 2021 - 4:16pm

I mean you're comparing IB salaries that just increased a few months ago to PE salaries that have existed for years

  • Analyst 1 in IB - Gen
Oct 18, 2021 - 4:45pm

Yes, multiple offers. Base salaries ranged from 125-150k, with bonus brining you to $300k. All offers were 300k target yr 1. Base either flat yoy or slight increases. I think carry at the sr assoc level, prob not much though. Salary's are less than banking given new bumps to 175k, but lifestyle and work will be much better and more interesting. Bonus seems to scale significantly in following years. I did not come across co-invest but hopefully salary's come up. Think GSO/Carlyle/KKR type of firms.
 

Oct 16, 2021 - 11:57pm

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