CB to Private Credit to PE
Hey,I am a first year credit analyst within the the CB of a BB bank. The job is not nearly as exciting or sexy as it was made out to be. Throughout the internship and then continuing in training we were led to believe a majority of the job would be transaction/deal related. I thought this was perfect considering I had previously interned in IB at a boutique sell side shop. I thought it would be intellectually stimulating like investment banking but a better work life balance…
After 7 months in the position, that is not the case at all. Most of the work consist of renewals, covenant compliance, spreading financials, and minor tweaks to existing facilities. I saw one new deal from start to finish in this time.All around I find the job not to be intellectually stimulating.
Although I know there's a lot to learn from situations, terms, products, processes, and of course knowledge/experience from seniors. Overall I don't feel challenged in what I am doing on a daily basis.
With that being said, I have been contacted by several head hunters for Private Credit. I have passed the first 2 rounds of an interview for a Direct Lending Fund and completing a case study now. I feel fairly confident about the case and I am looking towards the future as the turn around will be quick if offered and or if I were to continue forward with other funds I am speaking with.
Questions:
Will leaving my 2 year analyst program in less than a year really look that bad on my resume?
I eventually wang to go into private equity, this puts me closer to it as lending would be strictly to sponsors for LBOs. But is the transition from PC to PE increasingly difficult than if I were to rotate into the Financial Sponsors Group in the CB?
All in all… I want to work on more complex/probing work, transactions, slightly more intense environment, a better shot at PE, and the pay bump from 90k to 120k (total comp) wouldn't hurt at all either.
P.S. I like to work and after this experience I'd rather work long hours and be satisfied with what I do and how I am compensated than have a better work life balance. I regularly put in 50-60 hour weeks (standard analyst is 40-45) as I want to learn as much as possible and have become the go to 1st year analyst.
following, same like you 3 months in and i'm looking to get out. but will wait for the 1 year mark.
Private credit is a great career
very interesting deals, lots to do now that banks are nursing billions of losses in underwriting and less mind numbing DD vs PE and less process shit (you don’t have to run the FDD, CDD, the financing etc.)
also, very fund dependent but hours tend to be better than PE
Also, where we are in the cycle would definitely make sense to move to a credit fund
caveat: not sure you can move to PE after being a credit fund - everyone I know in credit funds are pretty much lifers
Hey, congrats on getting the pc interview. Seems like the process is going well! Would appreciate if I could see the case you were given. Currently in a similar situation myself!
Really appreciate the insight - could you elaborate on your caveat?
Basically the reason why PC has a better lifestyle than PE is the reason why it would be very difficult to switch (i.e. you’re never running a process - you’re essentially invited by a sponsor or an adviser to provide financing so very different day to day)
IMO, I would much rather be in PC than PE as not a fan of the process heavy stuff but that’s down to personal preference and of course comp is also quite a bit lower
If you’re set on PE, I would second what @Associate 1 in PE - LBOs anonymous poster said below - the path to PE has been debated to death and there’s little room for atypical candidates - would think you would need to go via the IB route for 12-18 months at least before making a move
Any chance you could shoot over the case?
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