Credit secondaries
What do you guys think of credit secondaries? Is it a good place to build a career? Curious on how it's different than regular credit investing. Thanks!
Trending Content - Credit Forum
Career Resources
Very new/emerging field.
Top players like Apollo are building out their expertise atm, if it's an area that seriously interests you it could be a great space to grow into.
It's currently a nonsense/gimmick sector.
A credit secondary is simply an LP secondary on a credit fund - nothing new or exciting here as you're just buying some random senior debt fund for a 5% discount and hoping to get a 12% IRR after pumping it full of leverage.
What Apollo are doing is more direct lending and preferred equity to actual credit funds - once again, not a new concept and not a secondary.
I would avoid this space as there are very limited good credit LP stakes that you can buy for decent discounts.
This. Secondaries is different than warehouse/fund finance/other bespoke structures directly to credit funds to originate more
Is this what Apollo is doing out of their credit secondaries fund? It's mainly made up of credit guys, not secondaries folks so I'd assume they wouldn't be doing much LP stuff.
No idea on if that’s what Apollos credit secondaries focus is on, but I’ve done a couple of credit LP secondaries.
It’s super similar to portfolio purchases of bank loans so I’d think credit folks are better hires than secondaries. There is a bit less GP underwriting since a lot of funds are in the same assets and the low / base / high cases generally should be at par or close to par.
Seems incredibly boring
The other gimmick sectors are Real Estate e Secondaries and Infra Secondaries ...simply buying LP stakes in these funds, and there is such limited supply...most groups now do these weird GP-led single asset deals at par value on failing infra assets or real estate with high LTVs and cash injections to cure debt breaches.
Vero vitae eos optio temporibus perferendis. Quasi eaque placeat cupiditate omnis quas libero. Expedita mollitia reprehenderit a perferendis. Ut aut exercitationem quia perspiciatis totam pariatur et. Necessitatibus officiis suscipit temporibus sapiente aut odio est. Et rerum quis laboriosam aperiam aut. Dolorum qui ut quod illo incidunt omnis non.
Cumque eaque sit beatae et commodi. Ea et molestias eveniet porro eos quo ex omnis. Et dolorem mollitia nemo sed minima eligendi officiis. Voluptatem quia reprehenderit alias illo. Est sed quo soluta consectetur suscipit. Quia porro nihil nam hic unde non. Dolorem dolorem est ut ut.
Iusto saepe sit voluptas voluptatem velit error. Recusandae dignissimos ut illum suscipit reiciendis et consequatur. Qui voluptas quasi architecto aspernatur nam. Tempore voluptatem quas nihil. Sit et impedit accusantium sequi error iure unde mollitia.
Ullam ad distinctio quisquam. Et aut maxime aliquid maiores consectetur aut. Veritatis aut quibusdam repellat ea blanditiis voluptatum. Nihil provident harum ipsa nihil. Quod molestiae iure necessitatibus ut veniam a illo. Recusandae non voluptatem adipisci tempora est odio odio delectus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...