Jul 11, 2026

Is now a good time to join PC + exit opps?

Hello,

I am currently in BB M&A, I have an internship offer from a MF in PC and am wondering about whether more experienced users think that now would be a good time to join the industry ?

Also, I am wondering about the exit opportunities that exist after this field, particularly if there are paths that could lead to a HF ? If so what kind and does anyone have advice ?

Preferably looking for takes on Europe / London but curious about everyone's opinion !

Thank you for your time !

8 Comments
 

Based on the most helpful WSO content, here’s what you need to know:

  1. Joining Private Credit (PC) Now:

    • The private credit space has been growing significantly, especially as traditional banks pull back on lending due to regulatory constraints. This has created opportunities for private credit funds to step in and fill the gap.
    • However, with higher interest rates and potential economic uncertainty, the environment could be challenging. If you're looking to gain experience in deal-making, there’s still a lot of dry powder in the market, meaning deal flow is likely to continue. But if you're aiming to learn disciplined investing, this might not be the ideal time, as the focus could lean more toward deploying capital than finding high-quality opportunities.
  2. Exit Opportunities from Private Credit:

    • Private credit can offer solid exit opportunities, particularly into hedge funds (HFs) that focus on credit strategies. Distressed debt or special situations hedge funds are a natural fit, as the skill set overlaps significantly.
    • For London/Europe, firms like King Street, Strategic Value Partners, and Blue Water Energy are examples of funds that value private credit experience. Additionally, transitioning to private equity (PE) is also a viable path, especially if you’re involved in mezzanine or structured equity deals.
  3. Advice for Hedge Fund Transitions:

    • If your goal is to move to a hedge fund, focus on building expertise in credit analysis, distressed investing, or special situations. These are the strategies most aligned with private credit experience.
    • Networking with headhunters who specialize in hedge fund placements in London is crucial. Firms like Citadel, Baupost Group, and Farallon Capital Management are known for hiring talent with strong credit backgrounds.

In summary, joining private credit now can be a good move, especially if you’re looking to leverage the current market dynamics. For exits, hedge funds with credit-focused strategies and private equity remain strong options, particularly in London.

Sources: Breakdown of Post-IB Exit Opportunities, Breakdown of Post-IB Exit Opportunities, Moving to Buy-Side in a Recessionary Environment, Are the heydays of Private Equity over?

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Its more mature now but the europe is like 4-5 years behind the US in DL but the euro banks also compete more aggressively with PC there. If its not a name brand shop it'll be hard for you to do something else if you don't like credit esp with the BB M&A optionality you have now. I think still easy to get to VP1 if you join now but depending on how this vintage performs, you could see it get tougher to get promoted. My advice is if you think you'll enjoy looking at downside risk and unitranche lending for the next 5-10 years and get paid well do it. 

 

My honest advice (current at a MF PC). Do BB IB ideally a modelling heavy group. Your learning will be 10x better. The modelling in DL is not conducive to the type of training you should ideally have. If after  2-3yrs at BB IB you decide that DL is where you want to be move in then. 

SOFR+400
 

I would prefer to start on the buy-side directly if I get that opportunity, that's why I'm trying to learn more about the potential PC -> HF pipelines or whether doing a career in PC right now is still a good option given the recent headlines, do you have an opinion on that?

 

IB to HF is infinitely easier. In a good Banking group you become a modelling machine. In a DL > HF move sure you are on the "buyside" but you will be "tainted" with a specific way of thinking about an investment and every fund does it differently - imho you are better off accumulating raw modelling horse power at a top banking group then jump into HF thereafter. That is my advice do w.e. you want.

SOFR+400
 

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