Is Private Credit Worth it to Start a Long Term Career in?
Would love to hear opinions on how the industry will hold up long term with AI and credit getting more public/trading freely.
If I were to start my career in PC, how would my career progression look (Salary and promotions wise), job stability through rough times, and the optionality to do something after PC?
Mega bump
I guess the first Q is why do you want to start a career in PC? Do you have a role lined up or just thinking about it? I've been in PC for a while, and if you want the option to do something else, you may be better off starting in an IB analyst program.
I should have mentioned it in my post, but I have a LevFin SA lined up at a BB for next summer and am pretty set on staying in credit long term. PC interests me because of the flexibility it offers with WLB (as far as I have heard on WSO) as well as being an investor in the credit space. I've always been interested in the private market more than the public, but recently decided that staying in credit would be a better path for me than PE. I don't particularly want to do PC for its exit opportunities, but was just wondering what the optionality would be given if I wanted to pivot. Any chance I could PM you?
What’s so interesting about the private markets? Shittier financial statements? Even on the public side you’ll see plenty of LBO debt and it is not fun…
I came from a BB LF background and transitioned into PC when it was hot at the mid-level - I want to think the market has cooled in excitement given the number of participants in the market today. WLB, in my opinion, is def better, but there are periods when I would be working longer than IB hours (e.g. condensed timelines, working on multiple IC memos at once, very sketch credits/sectors). Pricing is also not that appealing anymore at S+450-475 for regular private credit / +100-125 for hairy private credit. Most exit opps Ive seen is essentially moving to other private credit platforms (at the mid/senior level) while juniors, I've seen them exit back to IB (for more comp), to the public credit markets, and in some cases to MM PE.
The US net investment position is -$26 trillion at the moment. In other words, there is $26T of foreign money in the US capital markets. This has snowballed since 2008 and the global search for yield. Most of this is going to go away very soon, and combined with rising interest rates is going to be a death sentence for alts.
Where do you see the capital shifting to? Seems like right now its ABF and Secondaries.
The opportunity is similar to that of new century financial, Fremont investment and loan, credit based asset securitization services, Lehman, countrywide, golden west financial, Corus bank etc in the early 2000s.
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