BB Credit to Private Credit, is it possible?
Can you realistically go from a top BB doing credit within middle market to a private credit or DL shop? Or do you need IB to even be considered for lower end players in private credit / DL?
My role is very related to the transition however given its a BB; we are always senior secured on all of our exposure. If you have strong transactional experience, could that help justify landing an interview through networking?
Just curious from any ex-credit analysts who have moved into this space, how was your journey getting there?
Based on the most helpful WSO content, transitioning from a Bulge Bracket (BB) bank's credit team to a private credit or direct lending (DL) shop is indeed possible. Here's how your journey might look, based on similar transitions discussed in the forums:
Transactional Experience: Your experience with senior secured exposure is valuable. Private credit firms appreciate candidates with a solid understanding of credit risk and transactional experience. This can certainly help justify landing an interview, especially if you can demonstrate a strong track record.
Networking: As with many moves in finance, networking is key. Leveraging your connections, attending industry events, and reaching out to alumni or professionals in the private credit space can open doors for interviews. Your current role at a BB gives you a platform that should be utilized to its fullest.
Skillset: Make sure to highlight your analytical skills, understanding of credit agreements, and any experience with complex financial structures. These are all transferable and highly relevant to roles in private credit.
Pitching Yourself: When networking or interviewing, be prepared to discuss how your skills and experiences align with the needs of a private credit firm. Be clear about your understanding of the private credit market and how you can add value.
Learning Curve: Be open to the learning curve that comes with transitioning to private credit. While you have a strong foundation, there may be nuances in private credit that differ from your experience at a BB.
Success Stories: There are certainly ex-credit analysts who have successfully made this transition. They often cite persistence in networking, readiness to learn, and a strong grasp of credit fundamentals as key factors in their move.
Remember, every journey is unique, but with strong transactional experience and a proactive approach to networking and learning, you have a realistic shot at moving into private credit or DL. Keep honing your skills, expanding your network, and be ready to articulate your value proposition to potential employers in the private credit space.
Sources: How do top credit shops compare to MM/LMM buyout?, Restructuring --> Direct Lending / Private Credit, Private Credit -> Public Credit Exits?, BB Wholesale Credit Versus MM / Regional Bank IB, Q&A: CB -> CIB -> Distressed
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Yea, you’ll be able to move very easily. Skillset will be more applicable than some of the IB folk.
Yes. Very easily may be a stretch but with effort/geographic flexibility it should be doable.
A lot of BBs are getting into the private credit game, perhaps look into whether your bank is starting a team if easier?
Yes - Went from BB Credit to Mega DL firm (sponsor finance) after ~2 years at bank. Fairly common move. Feel like most associates came from Lev Fin or Sponsor coverage groups at BBs, Credit at BBs or Lending roles at non BB banks (think CIT, TD, etc).
Mind if I pm you with some questions?
Go for it!
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For sure!
What has your comp been year by year from the start of your career?
I can tell you crush it on Tinder. How about a hello first!
Little late to the party but mind if I PM too? In a similar spot at intern level and looking for some guidance. Thanks!
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