Nov 19, 2024

Distressed Credit out of university

Any advice on how to break into the distressed credit industry? I’m currently in university and not sure the best path forward. 2 years in IB? Would starting in a smaller shop right out of uni hinder my chances of a bigger fund exit?

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If you are worried about optionality down the road, do 2 years in IB. I joined a credit fund out of school, and it pigeonholed me into credit opportunities as I progressed in my career. There are going to be funds that want your typical 2+2 background, but in this job market I've interviewed at plenty of well known credit funds that are mentioned on WSO. But maybe I'm just lucky. It really depends on who you are working for, what sort of training you get, and if you will get the best exposure vs going to IB. 90% of the time though, IB will likely be a better bet to have a standardized training program, analyst class, etc.

 

Sure. Mainly worried about seniors not taking candidates seriously if they haven't done the IB route. I've got an offer from an MM for IB M&A or could potentially recruit for a distressed credit fund (in London btw). I am expecting the work to be more interesting at "to the point" at the credit fund, but would love to hear your thoughts.
For info, the fund is predominantly Asia-focused, 15 years in the business, but the founders are very well known in the Asia distressed debt sphere. Could have given it away there.

 

I'm not the best qualified for answering your question since I don't really know how recruiting works in the UK. But from what you wrote, it sounds like a good opportunity if you get it.. just make sure it's a decent-sized fund that can pay well (on par if not better than IB in the UK at your level), you get an opportunity to look at broader credit/distressed names, not just asia focused as that might pigeonhole you.

But I'd keep the IB offer warm until you get the other offer

 

From my understanding, there’s been no change to the fund and strategy. It was a fundraising/multiple expansion for Ares stock move (more aum in credit vs pe)

 

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