Dec 17, 2022
 

At the MFs, pay is definitely on par with buyout PE at the associate level.

 

What about more senior roles? How does an MD at a MF credit do compared to an MD in PE?

 

I’m not positive on this but my guess would be that it’s based on performance (carried interest) and fund size (upfront fee). Depending on the fund size, that will affect there base salary and the salary of the employees. With the performance of the fund, this will affect the carried interest - which the MD will gain more from the junior employees.

Equity has more of an upside then debt, so the carried interest for a PE fund definitely could be larger in a strong market but I think there are a lot of variables all around for MD’s in terms of comp between PC and PE.

 

It’s all about aum to headcount. Couple of the larger firms are relatively lean as you don’t need a lot of people to do credit investments. When you cross that with steady Moics / returns (unlike PE where I guarantee you bottom 90% of funds will not hit 2x MOIC), you can actually get sizable comp.

You won’t be flying private if you’re not a founding member of the fund but you won’t be in economy either.

 

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