2025 Credit Compensation Report

Private credit has emerged as one of the most dynamic areas of global finance.

Once considered a niche asset class, it now stands as a core pillar of institutional portfolios – and its rapid expansion continues to reshape the talent landscape.

Our Credit Compensation Report 2025 marks our first in-depth analysis of this evolving market, offering detailed insights into hiring and compensation trends across private credit, hybrid capital, and special situations. Built from conversations with over 175 investment professionals across the UK, this report captures how pay, structure, and strategy are shifting in response to a fast-maturing market.

Inside a rapidly changing market

Private credit assets under management have more than doubled over the past decade, with direct lending now accounting for a third of global AUM. As traditional lenders scaled back post-2008, private credit funds stepped in – offering flexible capital solutions that have driven a surge in deal activity and capital deployment.

But with growth has come complexity. Rising interest rates, shifting borrower dynamics, and macro uncertainty have tested the resilience of portfolios and created new challenges for credit investors. As a result, many firms are now building in-house workout and restructuring teams, investing in operational and legal expertise to better protect value and manage risk internally.

Compensation trends across fund sizes

This report provides a comprehensive analysis of salary, bonus, and total compensation across Analyst to Director levels – breaking down data by fund size to illustrate how reward structures differ across the market.

• Small funds often operate with lean teams and smaller pools but offer faster progression, greater deal exposure, and hands-on experience with senior leadership.
• Mid-sized funds show the widest variation in pay, reflecting differing philosophies on how to attract and retain talent. Some emphasise lean cost structures, while others invest in higher cash packages and structured bonuses to compete with larger players.
• Large funds such as Blackstone, Apollo, KKR, and Ares maintain institutional frameworks that align pay across asset classes. Compensation is higher overall, with structured long-term incentives and consistent benchmarking across teams.

Across all segments, one trend stands out: compensation has become a strategic lever for retention and competitiveness. From structured bonuses and LTIPs to selective carry participation, firms are fine-tuning their reward models to balance discipline with ambition in a maturing market.

The outlook for 2025

While 2025 opened with a degree of macro uncertainty, the overall tone is cautiously optimistic. Private equity funds remain under pressure to deploy capital, and private credit managers are positioning themselves to capture the resulting opportunity.

Firms that balance disciplined cost control with thoughtful incentive design will be best placed to attract and retain the talent needed for the next phase of growth. As the market continues to expand and diversify, we expect continued innovation in compensation – particularly around performance-linked and long-term incentive structures.

Why should you download the report?

The Credit Compensation Report 2025 offers a detailed, data-led view of how compensation is evolving across the private credit ecosystem – and what that means for both employers and professionals.

Inside, you’ll find:

• Compensation benchmarks by level and fund size
• Insights into hiring trends across private and hybrid credit
• Analysis of bonus structures, retention strategies, and carry participation
• Expert commentary on how firms are managing growth and risk in today’s market

Whether you’re a fund manager shaping a hiring strategy or an investment professional planning your next move, this report is your guide to understanding where the market stands – and where it’s headed.