Public vs Private Credit
I'm curious how you ultimately determined which path was the better fit for you. As a student, it's easy to find both public and private markets interesting, read about them, and listen to podcasts, but without direct experience in either, it feels like you’re making a blind decision.
For those who are working in either, what helped you realize that your chosen path was the right one, prior to starting and then after starting? Were there specific aspects of the work/responsibilities that stood out once you gained experience? And have you ever felt that the opposite might have been the better option for you.
"These are quite different jobs so I would prioritize what type of work you are better suited for. Do you want to do investigative research and take contrarian views in the public market and follow earnings? Or do you want to execute deals and move onto next one? Do you want to get paid like a HF comp trajectory (public) or IB trajectory (private)? Both and pros and cons."
- Quoted from the prior thread that had this title - adding this because from afar I enjoy following companies and understanding what drives performance and forming my own view. But having tangible outcomes and working through processes is also appealing.
Based on the most helpful WSO content, the decision between public and private credit often boils down to your personal preferences, career goals, and the type of work you enjoy. Here are some key insights to help you evaluate:
1. Nature of Work:
2. Compensation Trajectory:
3. Skill Development:
4. Career Fit:
5. Reflection from Professionals:
Ultimately, the choice depends on what excites you more: the intellectual challenge of market dynamics or the tangible impact of deal-making. Both paths have their pros and cons, and gaining exposure to both during internships or early in your career can help clarify your preferences.
Sources: Credit Hedge Fund opportunities, Credit Hedge Fund opportunities, Private Equity vs. Private Credit, Q&A: VP in LO Public Credit, Career Path Starting as Credit Analyst
Main difference for me was being on a deal team. I’m in PC, and underwriting is way more detailed because you can’t really sell your position.
WLB is better in public credit for slightly less pay. most people i know in public credit have pretty consistent 50-60 hrs a week, some 40-50.
What would you say is the comp difference between the two on average. Let's say for an associate for this sake.
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