Background: I have been at a large, BB bank (JPM, Wells, BoA), working in TMT mid-corporate banking group for about 2 years now. We underwrite syndicated term loans and revolvers for companies (both public and private) with up to $5B in revenue, and a lot of the companies I monitor are typically distressed, or near distressed, causing lots of amendments and high amounts of deal activity, both good because I learn a lot, but bad for hours. We aren't apart of sponsored deals so I lack LBO experience but I know how to model to ensure covenant compliance and view free cash flow generation. My day to day looks like analyzing company performance through public filings, listening to earnings calls, readings analyst reports, and putting together approval memos for companies in our portfolio or for live deals. Though I have learned a lot, and have great senior management in place who I admire, I feel like the learning curve is starting to flatten for me. The pay is fine, nothing amazing but acceptable.
Naturally, I started looking into the private credit side. I generally like what I do and love learning about companies.I think the private side is much more interesting and there's more flexibility with deal structures which I would love to learn more about. Though I have spoken to a number of recruiters who only look for people with an IB background. A number of them suggested I pivot to Leveraged Finance, but I'm still not getting looks from those teams as they want juniors with IB experience. I don't think my resume and experience competes with the people in IB if a private credit role arises, and don't really know what to turn to. I feel like I have had a great experience in this group I'm currently in but don't know what my next step should be if my goal is to enter the private credit industry. Is it time to move on from my current group to get additional experience or do I continue to stay in my current group for another year?
Based on the most helpful WSO content, here are some detailed steps and considerations for navigating your transition from a mid-corporate banking group to the private credit side:
Key Considerations:
Experience and Skill Set:
Market Perception:
Steps to Transition:
Enhance Your Skill Set:
Networking:
Consider a Lateral Move:
Stay or Move On:
Additional Tips:
By strategically enhancing your skill set, expanding your network, and considering lateral moves, you can position yourself more competitively for a transition into the private credit industry. Good luck!
Sources: 2017 Commercial/Corporate Banking Bonuses, Stuck at Current Firm, Private Credit $350k+ working 0-20 hours a week. Crazy for leaving?, 2017 Commercial/Corporate Banking Bonuses, Would you leave in this situation?
Are you only speaking to recruiters? Recruiters are generally risk averse. I would talk to private credit folks themselves and see what they have to say. Speak to the things that you know they do and you have the skill set for now. Additionally, start applying to open private credit junior roles. If you can get people on the phone, I’d imagine you’d be able to get a few folks to bite - you’re more up the learning curve than someone coming out of undergrad for sure. And junior roles look for people coming out of undergrad typically
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