Private credit professionals are seeing sharp increases in compensation in key financial hubs like New York and London, with the surge being driven by strong demand for expertise in asset-backed finance, a fast-growing segment within private credit, according to a report by Bloomberg.
The report cites data from credit recruitment firm RCQ Associates, as revealing that external hires in structured finance and private credit saw average pay increases of 21% in 2024, while those who remained in their roles experienced a 16% rise in total compensation, largely due to higher bonuses.
“This sector, and in particular asset-backed finance, has the fastest-growing compensation levels within credit,” said Edward James, Founding Director of RCQ Associates.
Vice President level saw the highest levels of competition, while external hiring for Junior Analyst and Associate roles declined, according to an RCQ client note seen by Bloomberg.
Managing Directors at private credit firms in the US typically earn between $1m and $2m annually, with additional carried interest of 3% to 15%. In London, total compensation for similar roles ranges from £600,000 ($760,000) to £1.5m.
A major catalyst for rising pay is the expansion of asset-based lending, which is expected to nearly double from $625bn in 2023 to $1.3tn by 2030, according to consultancy Maximize Market Research.
In addition to asset-backed finance, hiring in areas like collateralised loan obligations (CLOs) and commercial mortgage-backed securities (CMBS) remains strong. Significant risk transfer deals — largely driven by London-based investors — are also fuelling recruitment demand, RCQ noted.
The findings are based on salary data from 113 job moves tracked by RCQ in the past year.
