Venture Debt?

Thoughts on this career path? Which firms are leaders in this space? How does comp and job security compare to direct lending? What skills are most valued in this space? Would appreciate your thoughts.

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Comments (10)

  • Analyst 2 in IB - Cov
Aug 2, 2021 - 3:29pm

According to that M&I page, comp seemed lower than expected. Kind of surprised. Wonder what it's like at the senior / MD level.

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Aug 4, 2021 - 10:45pm

Hercules is a BDC that's doing venture debt, there are a couple other BDCs also doing it, smaller checks. I think SVB typically will write checks up to $25mm and take equity. Would think comp is in line with any other private credit shop, potentially with more upside if you're getting carry since target returns are likely a bit higher and if they are taking equity and you have carry, there is potential for a home run there, which you wouldn't have at a traditional private credit player.

  • 1
Aug 5, 2021 - 9:25pm

SVB is the dominant bank in the space by far (60% market share) and PacWest (formerly square 1) is the number two. A number of other banks and funds have entered the space recently including stifle, signature bank, runway growth capital and have began taking market share. The key debt funds in the space are Hercules (like the SVB of debt funds), Trinity capital, and triplepoint although there could be others I am missing. Comp:SVB associate (analyst level): 80k + 15%Pacwest: 60k + 10% + share of warrants (bank gets 80% and deal team splits remaining 20%; total comp probably around 72k)Hercules analyst: 80k + 50%. Happy to expand on this or answer any more questions. Hope this helps.

  • Analyst 1 in IB - CB
Oct 12, 2021 - 3:51pm

Currently at SVB as a 1st year Associate and have heard comp progression for the next 4 years is base increases by $10k every year with bonus staying at 15%. Bigger jump happens when you are promoted to VP after senior associate. I am guessing VP all in is around $170 - $180k. Very attractive stock purchase plan and immediate vesting on 401k are nice perks

Oct 12, 2021 - 4:45pm

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