Hiring volumes in structured finance and private credit rebounded in 2024 and are likely to remain robust across 2025, new research has found.
According to a report from recruitment specialists RCQ Associates, hiring has been noticeably driven by the growth in demand for private credit, with several alternative asset mangers and insurance companies adding to their teams last year. RCQ said that it expects this trend to continue into 2025.
RCQ’s Structured Finance & Private Credit Compensation Report 2025 found that average basic pay increases for those not promoted or moving externally reached six per cent last year. The average total compensation increase including bonuses was 11 per cent, reflecting an improved bonus pool.
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Average pay increases for external moves in the structured finance and private credit sector last year totalled 21 per cent, versus 19 per cent in 2023.
RCQ Associates observed a slight increase in candidate leverage during salary negotiations in the fourth quarter of the year, likely due to moderately improved hiring volumes. The report found that the growth of private credit in the UK was a driving force behind these compensation increases.
“For 2025, the UK private credit market is expected to see continued growth and increased participation,” read the report.
“We are seeing increasing numbers of new participants entering the market, including several US and UK-based financial institutions planning to launch asset-based lending strategies.
“Upward cost pressure on compensation is being seen in this sector.”
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Demand for talent remained concentrated on candidates with approximately three to 10 years of experience, RCQ noted. 70 per cent of offers made via RCQ in 2024 were for senior associate, vice president, or director roles.
“We continue to see the highest levels of competition for candidates at the VP level and over the past 12 months, average tenure of VPs at their current employers has reduced by over 12 months,” said the report.
“In addition, RCQ observed subdued turnover levels throughout 2024 across all sectors, but our expectation is this will increase in 2025 as activity picks up as market conditions continue to be favourable.
“As the year unfolds, we foresee an increase in overall recruitment activity and competition for talented individuals, compared to the lower levels experienced in 2023/2024.”
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