Buyside Credit Opportunities
Trying to get a better understanding of how the buyside credit landscape actually breaks down and, more specifically, what backgrounds different strategies tend to recruit from.
My rough segmentation is:
-Vanilla direct lending / private credit
-Large-cap / more complex private credit
-Mezz / junior capital / structured capital
-Opportunistic / special situations credit
-Stressed / distressed credit
-Performing / long-short credit HFs
-CLO / liquid loan investing
-Asset-based / specialty finance
For each, what are the typical feeder backgrounds?
I’m particularly interested in where the recruiting lines are actually drawn. For example, at what point do stressed/opportunistic funds strongly prefer RX backgrounds versus being open to someone with deep leveraged underwriting experience? Similarly, which strategies care much more about markets experience versus fundamental underwriting/modeling?
Would also be helpful if people could give example firms for each bucket. Thank you!
