Opportunistic Credit Exit Opps
Hi All,
I am on the verge of accepting an offer at a $6bn AUM, increasing to $10bn during my time there, credit fund with an extremely flexible investment mandate - meaning I wouldn't be sector specialised. Further, I would rotate across 2 strategies during the 2 year analyst program. Hoping this would give me a wide, transferable skillset. It isn't vanilla credit - firm focuses on creativity in structuring to get comfortable in illiquid, distressed or unconventional scenarios.
I was wondering what kinds of opportunities PC folks have gotten after the initial 2 years in credit. In the back of my mind, I would love the PE door to remain possible, but I know this is a difficult move. I spent my last two summers at a MM IB. Would love to speak to a headhunter about positioning down the line but do not have any contacts. Essentially, looking to get some colour from more experienced people on where I might find myself after this job.
Thank you all for your time and input.
Based on the most helpful WSO content, your role at a $6bn AUM credit fund with a flexible investment mandate and rotations across strategies positions you well for a variety of exit opportunities. Here's a breakdown of potential paths:
Private Equity (PE): While transitioning from private credit (PC) to PE can be challenging, it's not impossible. Your experience in creative structuring and exposure to illiquid and distressed scenarios could be appealing to smaller equity funds or niche PE shops. Networking will be critical here, as many PE firms value direct buy-side experience.
Other Credit-Related Roles: Many analysts move to other private credit funds, public credit roles, distressed investing, mezzanine financing, or leveraged finance at banks. These roles align closely with your current skillset and experience.
Hedge Funds: Credit hedge funds, particularly those focusing on distressed or event-driven strategies, could be a natural fit given your exposure to unconventional scenarios and illiquid investments.
MBA Programs: If you're considering an MBA, your experience at a growing credit fund with a diverse mandate will be a strong asset for top programs. Post-MBA, you could re-enter the buy-side or pivot to other areas like PE or corporate strategy.
Internal Growth: Many credit funds prefer to promote from within, so staying on as an associate could be an option if you enjoy the work and see long-term potential at the firm.
Smaller Equity Funds: As mentioned in WSO threads, once you explain your role and skillset, smaller equity funds may be receptive to hiring you, especially if you can demonstrate transferable skills.
To connect with headhunters, consider leveraging LinkedIn, alumni networks, or reaching out to professionals in your desired field for informational interviews. Building relationships early can help position you for your next move.
Sources: Undergraduate Opportunities - Credit Funds, https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1, Credit funds, Credit Hedge Fund opportunities, Ask me anything - Non Traditional Background to MM PE to H/S/W
In my experience 2 years in PC as an analyst doesn’t shut door to PE but it will def be tough as you will be competing with top banking talent. MF or UMM PE will be a battle but can see exit to MM or LMM PE fund. It also depends on the PC mandate of the firm ie opportunistic and investing across the cap stack is a better experience than just doing vanilla sponsor backed senior lending.
Currently a VP in PC at a opportunistic credit fund and pretty happy with the investing style, pay, wlb
Opportunistic can also include a lot of asset backed, which won’t help for pe
Would you mind letting me know what your WLB / pay is as VP? I'm about to become a VP in tech banking and starting to look at other options with a better WLB.
Thank you in advance for any help here.
It varies based on fund size but $275K-$300K base atleast. I haven’t recruited in a long time so not really sure. WLB is 55-60 hours when not on live deals. Everything is a fair game when on live deal but def never exceeded 80 hours and no weekend work whatsoever. I do login late Sunday night to catch up.. not required but just makes my Mondays less hectic
Is that base at a mega fund. A lot of shops are below that in mm. What’s all in?
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