Germany hiring? Yes, in distressed debt
If there's one thing that Germany is not short of, it's non-performing loans (NPLs). The country accounts for around one third of Europe's 608bn (€900bn) outstanding NPLs, so little wonder, then, that recruiters in the sector are busy.
"Non-performing loans are big business in Germany right now," says Maximillian Siem, a recruiter at Michael Page in Frankfurt. "Investment banks and distressed debt investors like Lone Star are hiring credit specialists, often with a real estate background."
Özcan Acikel, a consultant at Frankfurt search firm Smith & Jessen, confirms investment banks and funds are hiring, with an emphasis on NPLs in the real estate sector. He said Terra Capital, a real estate fund, and Cerberus Partners, a distressed debt hedge fund, were among those adding staff this year, as was Citigroup.
Citigroup isn't the only US bank with an eye on the German distressed debt market. In September, Credit Suisse First Boston moved David Abrams, its global head of distressed debt, from New York to London to manage a new operation targeting Germany. Recruiters say Lehman Brothers has also been building a distressed debt team with a German focus, while hedge funds such as Cerberus have added to the mix.
A consultant at one international search firm in Frankfurt says, "We've seen a lot of hedge funds looking for corporate financiers with experience in the debt advisory area."
Eagerness to hire is creating talent shortages, particularly when it comes to credit analysis. Acikel says the depth of talent on offer is limited: "We often have to go to real estate companies which have valuation teams for valuing the non performing loans of banks and other real estate firms."
Acikel says the hype surrounding the German non-performing loans market is positively impacting pay. With five years' experience, he says an employee at a distressed debt investment company could expect a base salary of €70,000 to €90,000, plus a 100% bonus. A similarly qualified individual in an investment bank could expect a salary of €100,000 to €120,000, plus a bonus of up to 400%.
