Private credit vs. secondaries

Seems like both secondaries (GP-led, LP-led) and private credit (direct lending, mezzanine) are good alternatives to direct equity career paths. If you had to compare, what are the pros and cons of these jobs?

  • Pay / WLB
  • Industry outlook
  • Technical skillsets required
  • Exit

Would like to hear your thoughts. Has anyone experienced both? Thank you.

 

Secondaries typically produces capital gains (provided the underlying assets acquired aren't loans) so it would be better from a carry perspective. Credit funds are naturally shit for carry since it produces income.

Secondaries have more opportunities for growth and more funds are creating secondaries divisions.

Credit is more cyclical where as if the secondary strategy is buyout and growth you can buy in more environments. Rates are high now so it's good for credit but they will eventually come down.

 
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