I’m currently an associate at a BB (GS, JPM, MS) working on the interest rate derivatives marketing desk within capital markets. I’m looking to make a transition out of banking, and private credit is the direction I’d like to go.
While I haven’t worked on a LF or coverage team, I feel confident in my abilities to do well in interviews and modeling tests based on my interview prep the last few months.
I’m getting ready to start outreach and work towards interviews, but how difficult should I expect it to be given my lack of true deal reps on the credit side? I’ve worked on an extremely sophisticated team structuring products that are likely more complex and have been involved in negotiating (derivative) credit docs, and I like to imagine I could learn the PC job pretty quickly, but curious if I’ll get pushback given my background.
The derivatives community is somewhat small relative to other banking groups, so there’s a much smaller sample size to look to in exits, but curious if those in PC see candidates with derivatives backgrounds often.
Transitioning from a derivatives banking role to private credit (PC) can be challenging but not impossible. Based on the most helpful WSO content, here are some key insights and advice:
Challenges Due to Lack of Deal Reps:
Positioning Your Background:
Interview Preparation:
Market Perception of Derivatives Backgrounds:
Outlook:
In summary, while your lack of direct credit deal experience may present some hurdles, your sophisticated derivatives background and strong technical skills can be compelling if positioned correctly. Focus on networking, tailoring your pitch, and preparing thoroughly for interviews to maximize your chances.
Sources: Credit Hedge Fund opportunities, Private Credit Interview Advice, Q&A: Barclays IB to MM Private Equity, Navigating Distressed HF space and recruitment, Q&A: Distressed/PE Associate
Does your bank have a internal levfin desk
I know a few people who have exited directly from this team at GS to Ares PC. Should be doable.
Not sure where you're from, but where I’m from NOBODY from a corporate derivatives desk could move directly (no pun intended) to direct lending. That’s just absurd.
The only “buyside” exit I’ve seen in recent times is PE capmarkets - even this I think is a leap, not because the job is hard but because you don’t develop the knowledge required to come in and structure/negotiate financings.
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