Jul 07, 2024

Private Credit at Large AM good or bad?

Hey everyone looking for thoughts on how experience in private credit at a large Asset Manager is viewed in the industry. Going to be joining Invesco's Senior Secured (Global Bank Loans) Team soon. From their website got the below: SENIOR AND SECURED At the top of the capital structure, senior secured loans are the highest priority to be repaid in the event of default or bankruptcy. LOW CORRELATION With relatively low volatility and correlation of investment returns versus traditional asset classes, senior loans offer potential portfolio diversification benefits. US$32.9bn* AUM WORLDWIDE We are one of the largest global bank loan managers, with the scale to obtain preferred allocations on selected new issues. Specifically looking for exit ops (could I go to LevFinat a BB from here for example, PE or even traditional M&A) as well as Culture, WLB and Comp. Any insights are appreciated!

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What’s your background? Are you coming from IB or are you fresh out of undergrad or changing careers? I’m assuming very young given the questions you’re asking.

Invesco is a massive money manager, smaller but right alongside multitrillion shops like Vanguard and Fidelity. It is where many people (not all) from IB and PE and HF would like to end up bc it is a gigantic institutional manager that isn’t gonna close up ever (unlike even the largest hedge funds) with low turnover and typically great culture.

As such, there’s no real “exit option” from your seat. Exit option precedents are based on 5000 others in your position before who wanted to leave their seat bc they didn’t want to be a career banker (hard to get/maintain clients) or career PE (hard to source deals) or career HF (hard to generate alpha) or whatever. A place like Invesco with stability and better WLB is where people want to go, generally, hence the saying that this IS your exit.

Can you leave to go somewhere else if you want to? Yeah ofc lol. But leaving what is generally seen as a better overall job from many perspectives to go into a less secure job that has a harder career progression doesn’t have many set precedents. You’ll have to talk to others who have left a huge manager to go into sell-side for advice. This board is for people who follow a more typical path and that path usually does not land you at Invesco for your first job.

That being said, these money managers are so huge that culture and WLB and whatever is gonna highly depend on your team. Real life networking with people who used to work on your desk is the best way forward to answer the kinds of questions you have. Maybe your group is shit at Invesco with high turnover which is why you even got the job so early on. Maybe it’s a great seat and you had awesome timing to get in. Maybe someone relocated bc of personal reasons and you networked well to get in. We don’t know bro. Either way just go enjoy your job and do well in it and don’t get wrapped up in the sophomoric mentality on this board that everything needs an exit. Bird in hand bro

 

Thank you so much for the lengthy response! In terms of my background I did an internship in B4 audit and DCM and recruited FT, only reason I ask about exit ops is that to be honest I wasn’t aiming for private credit but beggars can’t be choosers. I’m more interested in the PE side of things to be honest and specifically sustainability stuff so renewable energy and infrastructure. I figured working in LevFin at a BB would make that transition easier. FYI I’m based in the UK so probably different to US recruiting.

 

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