I know this forum is geared more towards junior candidates, but I have seen some really good insights from professionals who have clearly been in the industry a while, so hoping some of you can chime in. I am a mid-career professional in Rx Consulting at a smaller MM shop, primarily focusing on debtor-side work. I have experience with bankruptcy engagements, receiverships, 363 sales, Article 9 sales, and standard out-of-court turnarounds. I enjoy the work and the comp is strong, however, I am running into what I imagine many in the industry run into which causes them to leave: starting a family. I am not yet at the breaking point, but I think it is likely I will need to have a discussion with my firm about less travel in the next 6-12 months. If we can't work something out, then I may start looking for a different role with less travel.
I have had a few recruiters from the Big 3 reach out and when I bring this up they mentioned their UCC groups don't travel. I don't have any UCC experience, but I know it gets a bad rap on here and many consider the work to be lowest on the Rx CO totem pole in terms of how interesting it is and the haircut in comp. However, it seems like it could be a decent option if I want to stay in the industry, take a break from traveling, while leaving the door open to come back to debtor side work 3-5 years down the road. Both Big 3 recruiters said it is possible to move between groups and happens often, but I wonder if this is just a typical recruiter pitch.
Has anyone in Rx CO run into a similar issues, worked on the UCC side, or seen anyone move between groups (e.g., Debtor side to UCC or vice versa)? I am also exploring other options outside Rx Consulting, so any other thoughts are welcome.
Been active on this forum quite a bit recently lol. Anyways, I've done primarily secured creditor (lender) work, but I've fraternized enough with the UCC folks that I can give you a semi-helpful answer.
As far as UCC work goes yeah, it gets knocked around a bit because the engagements can feel more "monitoring" than "leading the charge." You’re often doing diligence, overseeing processes, making sure your constituents are protected, and you're probs not going to be driving operational change or creatively structuring deals like on the debtor side or secured lender side. It’s more passive. That said, it’s real restructuring work, and it’s critical work, especially in hairy capital structures. And there are some meaty cases where the UCC fights hard and shapes outcomes, so it’s not all dull. My personal opinion though is 90% UCCs are bottom feeders. Basically, you can broadly divide unsecured creds into two groups: good and bad. For every 1 good UCC engagement, there's 10 bad ones, and that's why it gets such a bad rep. Given that, you've really got two options as far as firm choice. 1) you can go work at a creditor heavy big 3 (basically FTI), as they get the lions share of both lender and UCC stuff. Then, you can hope to be staffed on the good UCC engagements instead of the bad ones. 2) you can go to a more 'niche' RX consulting firm that's a whale hunter so to speak (Province is a good one here). That gives you a higher chance of working on the good UCC stuff, at the downside of less brand recognition than the Big 3.
On the recruiter promises - take them with a grain of salt, it's a bit suspect. They're recruiters after all, it's their job to make it sound appealing. It’s not impossible to move between UCC and debtor/lender work at the Big 3, but it’s definitely harder than they make it sound. The thing is once you’re in a UCC group, you’re building a UCC resume, and internal mobility can depend a lot on relationships, staffing politics, timing and a bunch of other things.
I really don't think some time in UCC is going to derail your career lol. It could actually broaden it bc it'll give you a new perspective and give you a breather while life outside of work gets more demanding. Just be very clear-eyed that you may have to hustle to transition back if you want it later.
As far as other roles....idk FP&A, corp strat, ops in PE? Or you could get into a hedge fund but I doubt you'll like it.
Bottom line is don't let perfect be the enemy of good right now. You've got options.
Thanks, that is great info on the UCC side, sounds like it could still be a good option. I didn't think of the HF route, never really thought that was an option or heard of anyone in Rx Consulting going that direction. If you don't mind me asking, what led you down that path? I assume doing creditor-side work was more conducive to that path than debtor side.
Definitely more conducive lol. You're right, it's a rare exit, not sure if that's due to people not being interested or actual barriers to entry, but I managed to do it so...
As far as what led me down that path, I honestly think I was cursed / lucky enough to go down that path from the beginning. I didn't like PE because of slower feedback loops, a lot of BS work, and a lot of negotiating going on. I liked RX consulting because it was intense, interesting, varied and you got a range of experience (working as a banker on middle market deals for example), but in the end I realized I wanted a life where I earnt based on my personal performance, not based on promotions, and was more markets focused and encouraged creativity more so than even RX consulting
If you enjoy the debtor-side work, you could find a distressed PE-backed business near home and help turn them around. Success there will always make sure you're welcome back into debtor-side RX consulting.
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