Discover your dream Career
For Recruiters

Direct Lending pay is eye-watering – for the moment

It’s a good time to work in private credit. It’s an even better time to work in direct lending.

Get Morning Coffee  in your inbox. Sign up here.

Direct lending is a subsection of the private credit universe, in which lenders loan money directly to (well-established) companies without an investment banker sitting on your shoulder gathering fees. They’re also being paid bucket loads, however, according to salary & bonus data from finfluencer High Yield Harry (HYH).

HYH’s numbers track well with a Selby Jennings report that we saw earlier this year – although it’s worth pointing out that HYH’s numbers are for direct lending specifically, whilst Selby Jenning’s are for private credit as a whole (although both are for New York-based professionals). HYH's sample size was also comparatively small, with just 171 private credit respondents.

Direct lending professionals in New York out-earn a majority of their peers at some point in their careers. Although HYH’s numbers were incomplete, US-based direct lending analysts and VPs out-earn private equity professionals country-wide (by 5% and 3%, respectively), whilst New York-based professionals working in direct lending were almost on par with private equity people (earning just 2% to 7% less for associates and senior associates, respectively).

The only people that really earn more than direct lenders according to the survey are investment bankers and people working for hedge funds, who earn 15 and 60% more, respectively. 

In relation to banking, this is causing some incredulity: “Sort of crazy how much these chump ass middlemen are making,” said one respondent. 

Direct lending, and private credit more broadly, is in a bit of a boom period at the moment - to the extent that banks are getting in on the action

“Everyone at school once told me I was an idiot for going into credit in favor of skipping banking,” one private credit respondent said. “Very glad to have proved them all wrong.” Another agreed, calling the current state of things the “most attractive private credit market in over a decade.”

Have a confidential story, tip, or comment you’d like to share? Contact: +44 7537 182250 (SMS, Whatsapp or voicemail). Telegram: @SarahButcher. Click here to fill in our anonymous form, or email editortips@efinancialcareers.com. Signal also available.

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

author-card-avatar
AUTHORZeno Toulon

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Recommended Articles
Recommended Jobs
Tikehau Investment Management - Annonces
Private Debt Investment Associate
Tikehau Investment Management - Annonces
London, United Kingdom
Elevate Partners
Investment Associate - Cimate Fund
Elevate Partners
London, United Kingdom
Goodman Masson
VP - sell side M&A
Goodman Masson
London, United Kingdom

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.