Loan Asset Management Bonus & Promote
I’ve worked for life insurance, Co’s, loan servicers and well as for multifamily owner operator as an loan asset manager, loan underwriter, to property manager asset management. All in I have 20 years of experience in CRE. Currently I am exploring opportunities with REPE debt lenders in LA (think DoubleLine, Thorofare, PCCP, Parkview, Mesa West, KBS) on the loan asset management side and wondering about bonus structure. The base I understand to be in the $225-250k range for my experience, But bonus I am not sure. On the origination side target 75-100% would be a given, but on the asset management side I am not sure. Historically I have ranged from 25-55%.
In addition as to promote, what should I look for? Appreciate any insight.
I'm at a comparable fund in NYC. You should be targeting 350-400k in cash (so 250/50%) and then another ~100k in carry/promote/deferred if you are going to be a VP/Director working under someone.
As a head of Debt AM, you should be targeting more like 600-800k all in. Most likely there, the cash won't change much, but the deferred/carry portion would be much larger.
Those numbers look really big. I think even higher than asset management folks on the equities in charge of directing the property itself.
Do you think the large compensation in debt AM is due to the recent uptick in debt funds managing riskier loans?
I always thought debt AM was a cushy 30 to 40 hours/week job that paid enough to get you into the middle class, usually just reporting on loan metrics....
Those numbers are eye popping.
Those figures are for also being a Debt PM. He’s mentioned this in many threads but it’s not entirely straight forward and accurate.
99% of the people who ask about Debt AM are referring specifically to Loan AM not being a portfolio manager for a debt fund and being responsible for strategy/approving all loans/capital raising, etc…Those are completely different roles at an institutional shop. A Loan AM person (one who monitors loan covenants, administrative tasks, etc.) is not making $500K a year..
Very much debt fund specific because the lines for roles are blurred due to being very lean teams. OP was asking specifically about fund AM jobs and not loan servicing at PNC or Berkadia.
But I will point out that even some of those jobs pay pretty well. I know the senior people working on my servicing team are all making 250k+. My portfolio throws off about 3mm in fees a year to the servicers. The total team across the board is 2 seniors, 2 mid level and 2 analysts. Pretty easy to pay the seniors 250k+. You start getting into life co servicing which goes into the 10s of millions in fees and it is even easier to get there.
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