Opportunistic Credit Exits
I am an incoming associate at an opportunistic credit seat (mostly private, some public credit; think Oaktree, Apollo, Monarch) and currently work in restructuring.
Would you look to exit into public distressed or L/S credit from this seat? I am trying to maximize for career longevity and earnings - there seems to be more stability in a private seat but public investing potentially seems more interesting. Are there any other roles I should be considering?
how do you guys think about exiting a role right before you even start it... Anyway, public distress is a rapidly shrinking space unless you're at a shop like the one you are going to, so it's better to stick there. Only a handful of good L/S credit seats at SMs unless you want to go to pod shops and start swinging for the fence. You will likely get opptys to interview at from your next seat but those won't be as stable as the one you're going to.
Agreed - public distressed is interesting 0.5yrs over a 10-yr period. More money/stability on the advisory side with public distressed than on buyside. Stick to privates for LT money/stability. Moonshot paydays on the public side won't be in credit anyway - you have to take real risk and do equities for that.
Would you prefer advisor or Private investor for special sits/distressed investment?
Based on the most helpful WSO content, here’s what you need to know:
Public Distressed or L/S Credit Exits: Transitioning from an opportunistic credit seat to public distressed or long/short (L/S) credit is a viable path. Public credit roles, especially in hedge funds, often focus on game theory, capital structure arbitrage, and trading in and out of situations fluidly. These roles can be intellectually stimulating, particularly if you enjoy the volatility and psychological elements of public markets. However, they may lack the stability and long-term career security that private credit roles offer.
Private Credit Stability: Private credit roles, especially in firms like Oaktree or Apollo, are known for their stability and consistent earnings potential. These roles often involve deeper diligence and a more structured investment process, which can provide a solid foundation for career longevity. Additionally, private credit continues to see significant fund inflows, making it a growing and stable sector.
Other Roles to Consider:
Key Considerations:
Ultimately, your decision should align with your long-term career goals, risk tolerance, and personal interests. If you’re still uncertain, networking with professionals in these roles and seeking mentorship can provide additional clarity.
What was the interview process like at the shop you’re going to? Was there a case study component and what was that like?
del
Dolore illum nesciunt enim ea. Molestias magnam enim nobis sit quae. Et assumenda et et. Magni aliquam enim tempora odit voluptate.
Aperiam alias nihil odit voluptas laudantium. Optio enim suscipit et odit velit. Non facilis cumque eum omnis tempora temporibus et.
Voluptatem aut nostrum ullam dignissimos eligendi provident. Dolor ullam distinctio nobis commodi. Deserunt quia culpa aut nemo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...