Aug 21, 2024

Does Private Credit dig deeper than LevFin?

Currently at a super regional on the Levfin underwriting team. Was curious as to whether PC firms, senior particularly, dig deeper in names? I like when we get an iffy name and we have to dig deep to sell the credit to risk but it’s rare. Most of the time it’s so process heavy with multiple names at once not allowing a deeper dive. Would PC be any different? If not, what other jobs aside from distressed/mezz (don’t have the skill set) would allow me to spend more time on names?

2 Comments
 

Based on previous WSO threads, here's what you need to know:

  • Private Credit (PC) vs. LevFin: Private Credit can indeed involve a deeper dive into names compared to LevFin. While LevFin at a super regional bank might be process-heavy with multiple names at once, PC firms, especially senior ones, often require a more thorough analysis of each credit. This is because PC deals can be more bespoke and less commoditized than typical LevFin transactions.

  • Job Nature in PC: In PC, especially in senior roles, you might find yourself spending more time on individual names, particularly if the firm focuses on bespoke or complex deals. This deeper dive is necessary to understand the nuances and risks associated with each credit.

  • Alternative Roles: If you're looking for roles that allow you to spend more time on individual names and dig deeper, consider the following:

    • Distressed Debt: Although you mentioned not having the skill set for distressed/mezz, distressed debt roles often require a deep dive into troubled companies to understand their potential for recovery.
    • Special Situations: These roles involve unique or complex financial situations that require detailed analysis and creative structuring.
    • Credit Hedge Funds: These roles can also involve deep dives into individual credits, especially if the fund focuses on complex or distressed situations.

For more detailed insights, you might want to explore threads related to transitioning from LevFin to Private Credit or other specialized credit roles on WSO.

Sources: MF PC to HF, Special Sits, Something Else, Q&A : Credit (DL, SSG), Q&A: 3rd Year PE Associate ($10bn+ AUM, MBO/LBO, equity, mezz, distressed debt), Ask a credit H/F analyst anything, just trying to help, Private Credit out of undergraduate?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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