The best leveraged finance MDs earn the most now; directors not so much

It's an interesting time to work in leveraged finance, and if you're a managing director (MD), it also appears to be a very lucrative one.

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A new compensation survey from search firm Prospect Rock Partners says MDs in leveraged finance earned the most for last year amidst high competition for experienced talent. 

When salaries and bonuses are combined, Prospect Rock says compensation for US-based leveraged finance MDs was $1.6m for 2025, versus an average of $1.1m across other areas of investment banking (including M&A and equity capital markets). 

Below MD level, however, Prospect Rock found that compensation in leveraged finance was below other areas. Junior directors, for example, earned an average of $578k versus an average of $670k across investment banking teams as a whole.

Prospect Rock's full report is available here. Sample sizes are relatively small and outliers may have skewed results. However, it's easy to see why banks might be willing to pay extra for top leveraged finance talent. - With now interest rates likely to stay higher for longer, experience is needed to navigate the market. Just ask the JPMorgan bankers who have $30bn in combined debt for Electronic Arts and Sealed Air Corp to market.  

Prospect Rock managing partner Meridith Dennes says demand for experienced leveraged finance and restructuring professionals has picked up in 2026. "The dislocation in private credit markets has created real complexity for borrowers and lenders alike, and companies need experienced talent who can navigate that environment — whether that's structuring new deals or working through situations that need to be repositioned."

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