Burnt out in private credit, not sure where to go next
Started out in private credit a few years ago and am now a senior analyst. I really enjoy the work of analyzing businesses from a credit perspective and making quick decisions, especially when a SS or public side dislocation in a single B name comes across our desk (we have a flexible mandate).
But, I just don't think I'm built for live deals and the deal lifestyle. The hours (75+ during live deals which is basically September through Christmas) are killing me. It is only a few weeks into busy season and I'm already banging my head against the wall. It's just super intense and there is never enough time to satisfy all the seniors when you're staffed on 3-4 live deals at the same time. I try to give 100% of myself to the work but even then I'm being killed for the little things (not chasing on the loose NDA fast enough, not getting portfolio monitoring done fast enough, etc. etc.).
So yeah, I've decided I'll survive this season and move on once my bonus clears in the new year. Just not sure what job fits the bill. Essentially I like working with risky credits and stressed businesses, but just want something a bit more chill. I've been looking into the public sphere but not sure where makes sense for my experience and wants (HY fixed income shop, CLO, Hedge fund, etc.).
What’s your total expected comp as a senior analyst?
Chiller hours means you go corporate.
Currently making close to $300 if it’s a top bucket year with good deal flow. Probably closer to $250 since I’m not performing at my best. But surely there is a middle ground between corporate drone 9-5 and live deal hell. Like at a mutual fund or something.
Have been feeling the same way. I’ve been in private credit for 3+ years now. 2022 was a lull and everyone worked only 35-40 hour weeks but deal flows have returned the last several weeks. We’ve had some turnover so unfortunately we’re doing more with less people and it’s burning me out. Wondering if I would have to take a pay cut for less hours.
Flexibility of mandate means more opportunities fall in scope hence more hours. Stressed credits are interesting because of the intellectual challenge but they are a grind.
For less hours / less pay: secondaries (very much in vogue now as the industry needs them, both PE and PC), SWF (some), as you say CLO/HY. All these require slightly difference but comparable skill set, however your story cannot be that you want to work less. You need to find the right narrative to leave PC.
As for HF, the grind is even more: even if you do less hours the pressure is immense to generate ideas and MTM.
As a general comment: I think changing job (company, industry) because the hours between Sept and Xmas are kind of long is quite narrow minded but nevertheless some food for thoughts above.
I mean, I wouldn’t say the hours are substantially better during off peak. Still 1 or 2 low conviction live deals plus monitoring/admin = 65 hrs a week. It also picks up in the lead in to summer. It’s more that the stress is manageable since I’m not working on as many serious transactions.
But yes I see your point. Interesting situations are inherently sweaty. Would you say it’s easy to go from HF to HY AM? I’m considering shooting my shot in the HF world (my team has done some decent placements) and if it doesn’t work out jump to a large AM. I like my odds of managing the stress of idea generation rather than the 100 little processes that go into private credit deals.
Seems like your team has a bad WLB generally speaking, but you really should look at the type of job you like and are good at, hours are more a reflection of culture. The issue is not if you can manage the stress of a HF, but if you can generate ideas: how many do you have in your track record? How can you prove your worth in HF setting? HF is a different business model and personalities, hence if you are good at illiquid, special sits, PE-like processes you are unlikely to be good at investing "in the market". Again, not picking on you but just asking the questions I think you should reflect on.
Btw it's easier to go from where you are to HY AM then to HF: HY is a large beta play and does not require the same intellectual rigor as a HF.
I dont get it, your suggested exits are similar if not worse WLB. go to FP&A
At that point I may as well go IG AM. Why in the hell would the logical step be FP&A?
Long only fixed income asset management is my recommendation, particularly in the high yield space. You could realistically make $300k your first year jumping ship. As this is the high end for analysts that are not senior analysts, my advice would be to look for a team where you would be the junior and folks are already making above that, otherwise it gets pretty political if you make more than the current analysts even if you're more skilled.
With higher for longer in rates, and the risk premium for equities not being worth it considering you could get "equity like" returns in fixed income, a lot of flows are going to long only fixed income funds and many would have newfound budget for an additional analyst.
Agree with all except flows. Factually flows into HY AM is flat to negative YTD and at the moment there’s no activity because of lack of supply (ie no new issuances). LO AM have little/no budget for new hires now.
Why don't you quit your job & go the (Solopreneurial) entrepreneurial route - selling interview prep content (in Private Credit) & stuff to add to Resume (bullets = Private Credit Analyst Bullet Points) via knowledge/skillset acquisition - marketed & sold to a mass (global) online audience - with me. (Global via subtitles in multiple languages, for starters).
Looking for a partner w/ complimentary skillset to mine (Modeling, Writing, Speaking on video) to get it thru finish line, pencils down until then. As Trump says in this (totally unrelated) 2011 clip "its soooo easyyyyyyyy"
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