"Future of ABL in Private Credit - Growth Opportunity or Career Pigeonhole?"
Currently a Senior Associate in middle-market credit underwriting at a large bank, primarily focused on cash-flow lending across various industries.
I’m considering an opportunity at a smaller (~$500MM AUM), industry-specialized private credit platform focused on asset-based lending (ABL). The role would involve significant ownership of underwriting, structuring, deal execution, and investment committee presentations.
My long-term goal is to build a career in private credit, ideally at a more established middle-market direct lender (think MidCap, NXT, Twin Brook, etc.).
A few questions for those working in the industry:
1. Transferability: Would 1–2 years of investment experience at a niche ABL platform, combined with my existing cash-flow underwriting background, make me more competitive for traditional direct lending roles? Or could it pigeonhole me?
2. Industry outlook: With major alternative asset managers expanding into asset-based finance, do you expect middle-market private credit firms to increasingly adopt ABL strategies?
3. Career decision: Would you make this move to gain actual private credit investing experience, or stay at a large bank building broader cash-flow underwriting experience until a traditional direct lending opportunity opens up?
Assuming comparable compensation, I’m curious how people in private credit would evaluate this trade-off.
Appreciate any perspectives, especially from those involved in hiring or who’ve made a similar transition.
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