Private Debt vs High Yield Credit Fund for PE Transition
Alright, so I know neither of the above is ideal, or likely... but given the choice between the two, which would better position you for attempting to move into private equity without an IB background?
I went straight into a hedge fund out of school and have been there for just over a year now. We mostly look at ordinary high yield credits, but occasionally foray into stressed and distressed opportunities as well. I recently received an offer to join a private debt shop, but eventually I'd really like the chance to do more longer-term operational investing at a PE shop.
My initial thought would be that private debt is marginally closer to PE and may have better opportunities for networking with funds you lend to when compared to a fund that invests in the public markets, but I can also see how getting into more distressed situations if and when the market turns could be better experience
If it matters, I went to a large midwestern state school and am currently in NY. For purposes of the discussion, let's assume that the three are around the same "ranking" with similar AUM (i.e. comparable MM HF vs MM debt fund vs MM buyout fund, or three LMM funds, three MFs etc.)
Hey BobbyDoucher, sorry about the delay, but are any of these useful:
Fingers crossed that one of those helps you.
Anyone with any thoughts here?
Depends how large the private debt shops is. Do they do majority sponsor-backed deals? Do they have a track record in sending associates to MBA business schools">M7 MBA schools? Reason I ask is that I’ve seen people go from debt shops to PE shops post-MBA. If it’s a well known debt shop the possibility is definitely there albeit you’d be getting looks probably from LMM/MM PE firms rather UMM/MF.
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