LO Credit (HY/LL/IG) vs Private Credit
I have 2.5 YOE in corporate credit research at a large AM (~$40BB AUM in corp. credit). I'm happy with my current role but not particularly excited by "plain-vanilla" corporate credit research. I've been interviewing for a few private credit roles which has piqued my interest in making a move. Looking for insight to differences in comp, hours, exit opps, etc.
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I toyed around with this decision in undergrad after a banking internship, and eventually made the choice to go to the public side.
With some experience under my belt, here is how I have been thinking about it:
Sure in public credit everything starts to look the same after a while, but things were pretty interesting during the early stages of coronavirus. The market serves up some excitement occasionally.
In private credit, there is also a lot more busywork on a daily basis. Maybe it interests you to be in calls with "Northwestern Paving Co." negotiating the terms to get something pushed through IC, but it's not for me. An unfair example maybe, but my point is it's not all sunshine and rainbows.
Also, if you do want to get more involved in negotiations, you could probably ask to get staffed on some hairy restructuring situations (assuming your company is active in the HY space there are bound to be a few).
In terms of comp, I won't beat around the bush. It's higher. Usually a lot. At my level (An2) I'd be taking at least a 40k raise if I switched over. Hours are definitely worse too (probably 60+ vs the 40+ on the public side).
I wouldn't say exit opps are wildly different than HY/LL. It definitely a step toward the direct lending/mezzanine space if that is what interests you, but it's not like doors to PE or anything equity focused will be flying open.
I would encourage you to keep interviewing and talk to some employees to find out if it's for you rather than take my advice. Then at least you can turn down the offer in your hand rather than wondering!
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