PC London - state of the art

Based on the most helpful WSO content, here's what you need to know about the current state of the London market for private credit (PC):

1. Market Sentiment:

   • The London market has been impacted by Brexit and the potential for a Labour government, leading to reduced deal flow and hiring.
   • Some banks have moved parts of their teams to Continental Europe, which might affect the availability of roles in London.

2. Recruitment Trends:

   • There is a noticeable focus on restructuring (Rx) professionals, given the current economic uncertainties.
   • Leveraged Finance (LevFin) roles are also significant, especially for those looking to transition into direct lending or credit funds.

3. Skill Requirements:

   • For distressed investing or credit funds, understanding the intricacies of the loan world is crucial.
   • Skills in M&A might not be as directly applicable to roles in direct lending or credit funds, which require a deeper understanding of leveraged loans and long-term holds.

4. Pressure from Broadly Syndicated Loans (BSL):

   • The pressure from BSL is high, and there might be a need for a wave of M&A activity before the largest funds start looking for new talent again.

5. Current Hiring Landscape:

   • The hiring landscape is cautious, with companies awaiting clarity on Brexit outcomes and economic policies.
   • There is a preference for candidates with strong backgrounds in Rx and LevFin, given the current market conditions.

In summary, while there are opportunities in the London PC market, the focus is more on Rx and LevFin professionals. The market is cautious, and the skill level required is high, particularly in understanding leveraged loans and restructuring.

Sources: 20 Most Frequently Asked Questions - London Edition, LevFin in London, Investment Banking in London (EMEA) - Strongest Players, League Tables, Salaries, Differences..., Impact of Brexit in London recruitment, 20 Most Frequently Asked Questions - London Edition