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?
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.
Thank you for your reply! Could I pm you for more info?
Maybe list your questions here so in case someone has the same questions they can see them as well
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
None of these are exclusively distressed, but there’s a few special sits funds that hire out of undergrad now: Bain Capital Special Situations, Ares Special Opportunities, Oak Hill Advisors, Sixth Street Strategic Capital, to name a few
Fwiw ASOF was rebranded into opportunistic credit, anyone know if this means anything for the team?
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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