Credit Analyst in LO AM or Private credit shops
Hi there,
I have five years of experience in credit investment at a tier-one LO shop in Europe—80% leveraged loans, 15% high yield, and 5% private placements. I was fortunate to skip IB and go directly to the buy side after college.
Now, I am about to finish my MBA (H/S/W) and start recruiting. Based on my experience, I see two potential paths:
- Joining an LO in the US and focusing on the same asset class (leveraged loans/ HY), with a long-term goal of following the portfolio manager track (I have no interest in IG or municipals).
- Joining a private credit firm (Ares, Blue Owl, Golub, etc.), where I hope to develop skills in direct lending, due diligence, and structuring.
Could you help me decide which track to pursue? I currently have job leads on both sides: a $100bn AUM LO and a senior associate role at a credit shop (Ares/Golub/Blue Owl).
Specifically, I have the following questions:
- I'd love to hear your thoughts on industry trends, career progression, and long-term work-life balance. I don’t mind grinding for the next three years, but as a woman, I hope to have kids in the next five years, so I’d like to factor that into my decision.
- Comp-wise, my previous job in Europe LO pays very little bonus (30%). Is that the typical bonus I should expect from a US LO credit analyst role? On the base side, most LOs offer 190k-210k for the post-MBA position I am interviewing for.
- What would the comp structure be for PC ? I think carry can be limited. How is the comp structure different between a loan shop and a PC arm of a PE firm (i.e. Blackstone)
- I haven’t met many post-MBAs who have chosen between these paths—perhaps private credit attracts more MBAs. How do you think I should frame my MBA experience for these roles?
Thank you so much for answering any of my questions!
Based on the most helpful WSO content, here’s a breakdown to help you navigate your decision:
1. Industry Trends and Career Progression
2. Work-Life Balance
3. Compensation Structure
4. Framing Your MBA Experience
5. Decision Factors
Final Thoughts
Private credit tends to attract more MBAs due to its deal-oriented nature and higher comp potential. However, your decision should weigh heavily on your long-term goals, including lifestyle preferences and family planning. Both paths are strong, but private credit may offer more flexibility in terms of career options down the line.
Sources: Career Path Starting as Credit Analyst, Credit Hedge Fund opportunities, Credit Risk Analyst - My Experience, MBB Analyst comp/hours ?, Guide to Careers in Market Risk
Hey Adge - have similar questions and in the same position. Would love to discuss and share my thoughts. DM'd you so let me know if you'd be willing to talk seperately!
Not exactly in the same boat, but I am also at a target M7 program for IM, though I'm a 1Y. I recruited primarily for LO equities, but I am somewhat familiar with PC and FI.
My understanding is that FI at PIMCO or other top LOs will pay more than your name brand PC shops excluding maybe BX. For a short while I was in a recruiting process for one of the PC shops that you mentioned, but I dropped out when I realized it wasn't really what I was looking for (more deals/IB like vs equity research). The comp numbers I heard were around 275k for this shop, though it might be higher elsewhere. The hours were supposedly closer to 70 hours a week, which is a far cry from LO equities or FI which might be 60 during rough weeks and more like a sustained 50 hours a week.
At my school, the people that look at PC are typically not your investment/asset management folk but rather your IB and maybe PE type.
I can speak to the LO side here in the US. My current background is that I cover HY/LL as well as IG. Work life balance is pretty amazing for most careers in finance. My slow seasons are less than 40 hours and maybe at the most 55 hours which is peak earnings/conference season. Bonus is much higher here than in Europe. I would say on the low end it's closer to 70% of base but honestly I've never had a year lower than 90% of base and now consistently above 100% of base, most recently 125% of base. I think that is the norm, especially post MBA. Never did MBA but have been an analyst for more than 4 years at this point. Feel free to PM if you have questions on the LO side.
i would go where there’s growth and that’s private credit. LO public credit is seeing outflows is you aren’t a tier 1 manager, is an expensive business to run, is seeing fee compression and a long streak of weak fundraising
it’s easier to go from private credit to public as well if you wanted to down the line
I work in a large MF which has a separate CLO (leverage loans + HY) and direct lending arm.
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Would love to DM about this!
From a practical standpoint as someone in the LO real money space. I consider usd 100bio LO shop to be fairly small, unless it runs a limited number ofconcentrated strategies. I would choose Ares over such a shop.
It sounds like the rule of thumb is going to larger AUM, what other criteria would you look into?
Thanks
If it’s not the big three or CapG/Welly, look elsewhere.
What are the big three?
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