Hedge fund firms in London are offering some of the most lucrative pay packages for credit research analysts, according to report by eFinancial careers citing a recent study by recruitment consultancy Octavius Finance.
Junior hedge fund credit analysts can earn between £96,000 ($129,000) and £166,000 ($223,000) including bonuses, with top performers receiving bonuses of up to 75% of salary. More senior analysts, at Director or Portfolio Manager level, can command salaries of £150,000 or more, typically tied to performance-based P&L agreements. Across the sector, total compensation can exceed £330,000 ($442,000) for the most senior professionals.
The report highlights that buy-side firms, particularly hedge funds, are increasingly differentiating themselves from banks by offering higher bonuses and salary uplifts, with moves from banks to the buy-side yielding up to a 20% salary increase.
Demand for technically skilled junior analysts remains strong, with a notable shortage of candidates proficient in financial modelling and emerging markets experience. Hiring processes have become more rigorous, featuring technical tests and case-study style interviews to ensure quality.
Octavius Finance also noted that while overall pay has been relatively flat in recent years, hiring momentum in the City has strengthened, with hedge funds actively competing for top junior talent to support their growing credit research teams.
