Would I be possible to go from private credit ABF (structured credit financings - PC asset backed stuff, PE NAV loans, capital call lines) to more regular way direct lending? Also how hard would it be to go from this to more capital solutions type roles?
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Based on the most helpful WSO content:
Transition from Private Credit ABF to Direct Lending: Transitioning from private credit asset-backed financing (ABF) roles to more traditional direct lending roles is feasible. The skills and experience gained in structured credit financings, PE NAV loans, and capital call lines can be valuable in direct lending. However, the transition might require demonstrating your ability to handle more straightforward lending deals and possibly some networking within the industry.
Transition to Capital Solutions Roles: Moving from private credit ABF to capital solutions roles can be more challenging. Capital solutions roles often require a different mindset and skill set, focusing more on equity-like risk-taking rather than the risk-averse nature of credit roles. You would need to showcase your ability to think as an investor farther down the capital structure, possibly by highlighting any sub-debt or equity deals you have worked on.
For more detailed insights, you might want to explore threads related to transitions within the credit and lending space on WSO.
Sources: Private Debt/Direct Lending Exit Opps?, Direct Lending --> Distressed/Special Situations Investing, Credit Fund to PE: Is it Doable, Restructuring --> Direct Lending / Private Credit, Private Credit / Direct Lending Comp
Should be possible given structured stuff is usually more difficult/technical
PC ABF is a lot more legal than Direct Lending. Modeling is quite different since you often get NAV, Consumer loans, Hard Assets to model and they are amortized vs bullet for TLBs of DL. Your advantage would be to deal with legal matters but disadvantage would be the modeling and business case study mind. So you should spend time practicing a lot and you ll be fine. Legal things are far harder to get … I made the switch from Lev Fin to ABF to DL…
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