MF Liquid Credit Analyst Exit Opps
I know this topic has been discussed on a few threads here but just wanted to hear some more perspectives.
Most of the MFs or MF-like names (Blackstone, Ares, KKR, etc.) have analyst programs for their liquid credit groups. Hard to generalize but work seems to be typically looking at loans (maybe some bonds) of non-ig companies for CLO vehices, SMAs, etc.
What do most people see as the potential exit opps from the analyst programs? Obviously, these are relatively new and hard to use associate exit opps as true data points but curious to here any anecdotal evidence or opinions
A number of these MF Liquid/Performing credit analysts typically end up staying as an associate or move around to other credit shops. Rarely see moves to traditional buyouts PE (as I’m sure this is the next question folks will ask). I’ve seen some performing/liquid folks move to buyouts PE at the same MF but they started in traditional IB and moved to credit as an associate and then reset to join the next PE class.
Interesting. How wide of a runway do you think these analysts have in credit world? DL? Can they move down cap structure to mezz / special sits? I’d imagine they would as good a candidate as any banking analyst given name brand on resume but not sure
A bunch do move into DL/Private credit, but those that move deeper in the cap structure or invest in special sits/distressed typically come from IB (RX, LF, etc) The reality is that liquid credit, as a distressed investment professional once told me, you’re “spoon fed” information. Primary syndications give you an LP, model, tons of reports, and from time to time a CIM. You also have access to the management and banking teams for detailed DD purposes during primary and secondary situations.
Any advice on how to get into liquid credit roles post mba or without prior relevant exp?
A lot of these take summer MBA associates. If you’ve graduated and don’t have experience, will be tough as you’re competing with 1) the analysts getting promoted to associate 2) fresh MBA grads / summer associate converts 3) IBD analyst moving to these roles.
could you name or explain how to find these firms? I think I saw a couple MF's with credit opportunities or Invest for internships only but that's mainly it. I interned in liquid credit but my firm's not hiring and I go to a non target (t30) school
Are these 2 year and out programs? The goal should be to stay on platform but if not probably somewhat limited to long only credit, with some potential for more credit HF type roles. Can probably make the jump to DL as well. After a 2 year program still so junior/cheap that there is more flexibility. However, the longer you're in long only credit the more stuck you are (not that that is inherently a bad thing, just is).
Agree and to chime in on your first comment, a lot of these roles are not 2 and done and a lot do move up the ranks within credit.
They’re usually not 2 and out. However, I asked (op) because I’m joining one of these groups and in the future am leaning towards a lucrative / riskier career path. I understand that in terms of lucrative paths, probably still limited to credit but I do find credit hedge funds a pretty interesting spot. When I took the offer, I had the same intuition that analysts are still very moldable and that the name brand would help
Where does comp plateau once you’re a senior analyst?
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