Jun 04, 2025

Should I take a Gap Year Before Senior Year to Break into Private Credit?

Hi everyone,

I’m a rising senior at Babson College majoring in Finance. Over the past 17 months, I interned at a boutique asset management firm where I worked closely with the founder on launching the first ETF to hold private company shares (like SpaceX and Klarna). I also contributed to fairness opinions for SPAC deals and even participated in the Nasdaq bell ringing—definitely some standout moments.

Initially, I was led to believe that a full-time offer might be on the table, but when I tried to formalize that conversation, it became clear the opportunity wasn’t going to materialize. My responsibilities also shifted more toward administrative work than financial analysis, so I decided it was time to move on and re-evaluate.

That led me to private credit. While researching ETFs, I noticed a growing number of interval funds and dove deep into the private credit space. I’ve become extremely interested in the asset class—specifically, the conviction-driven nature of direct lending and the long-hold approach to credit investing.

Here’s my situation: From what I’ve learned through networking, most undergrads break into private credit through one of two paths: 1. Securing a junior-year internship and converting it 2. Starting in leveraged finance or IB and transitioning in later

I haven’t done either. And since I’m entering my senior year this fall, I’ve missed the typical recruiting window for Summer 2025 internships, and I’m ineligible for Summer 2026 recruiting as a graduating senior.

I’m strongly considering taking a gap year before senior year, effectively pushing graduation back by one year so I’d be eligible to recruit for Summer 2026 internships. This would also give me time to land a more technical, modeling-heavy internship (whether at a boutique credit fund, LevFin group, or similar) and fill in the gaps in my experience.

I’m all in on breaking into private credit. My concern is simply that I “clicked” a bit late—and I want to set myself up with the best possible foundation to be competitive when it counts.

Has anyone taken a similar path—delaying graduation to re-enter the recruiting cycle? Does this sound like a smart move? And if so, what would be the most strategic way to spend that gap year?

Appreciate any advice.

6 Comments
 

Taking a gap year before your senior year to re-enter the recruiting cycle for private credit could be a strategic move, especially given your clear interest in the asset class and the need to bolster your technical experience. Based on the most helpful WSO content, here’s how you can evaluate and approach this decision:

Why a Gap Year Could Work:

  1. Eligibility for Recruiting: By delaying graduation, you’d align yourself with the Summer 2026 recruiting cycle, giving you a fresh shot at securing a private credit internship.
  2. Time to Build Relevant Experience: A gap year would allow you to pursue a modeling-heavy internship in leveraged finance, credit funds, or related areas, which are critical for breaking into private credit.
  3. Networking Opportunities: You’d have additional time to network with professionals in private credit, attend industry events, and build relationships that could lead to opportunities.

Potential Risks:

  1. Perception of a Gap Year: While gap years are becoming more common, you’ll need to clearly articulate your reasons for taking one during interviews. Focus on how it’s a strategic decision to gain relevant experience and align with your career goals.
  2. Financial and Time Costs: Delaying graduation comes with costs, both in terms of tuition and lost time in the workforce. Ensure the potential payoff in private credit justifies this investment.

Strategic Use of the Gap Year:

  1. Targeted Internships: Secure an internship in leveraged finance, a boutique credit fund, or a related field. This will help you develop the technical skills (e.g., financial modeling, credit analysis) that private credit firms value.
  2. Certifications and Courses: Consider completing certifications like CFA Level 1 or taking advanced financial modeling courses to further strengthen your technical foundation.
  3. Networking: Leverage LinkedIn, alumni networks, and industry events to connect with professionals in private credit. Informational interviews can provide insights and potentially lead to referrals.
  4. Private Credit Research: Deepen your understanding of the space by studying interval funds, direct lending strategies, and market trends. This will help you stand out in interviews.

Alternative Paths:

If a gap year feels too risky, you could consider: - Boutique Internships During Senior Year: Even if unpaid, a part-time internship at a boutique credit fund or LevFin group could add relevant experience to your resume. - Post-Graduation MSF Program: A one-year Master’s in Finance at a target school could provide another recruiting cycle and access to private credit opportunities.

Final Thoughts:

Taking a gap year is a bold but potentially rewarding move if executed strategically. It aligns with the advice from WSO threads where users have successfully delayed graduation to re-enter recruiting cycles. The key is to maximize the year by gaining relevant experience, building your network, and sharpening your technical skills. If private credit is your ultimate goal, this could be the right step to position yourself competitively.

Sources: My Four Year Plan, Missed SA 2019 recruiting - delay graduation for SA 2020?, Junior In College Who Missed Summer 2022 Recruiting, Q&A: From Corporate Finance to Corporate Strategy (Supply), Private Credit out of undergraduate?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Is JPM credit risk an underwriting role? If so, you might be fine and can get a decent PC offer. It’ll be much tougher if you only work on IG companies. 

Otherwise, I’d suggest trying to leverage JPM’s brand name and recruit elsewhere or move internally at JPM (although this is always a touchy subject at the intern level so tread lightly). 

 
Most Helpful

Unde magni impedit ipsa placeat ut laboriosam totam voluptas. Et qui id porro repellendus eligendi aut fugiat. Quibusdam reprehenderit vel iure delectus ex esse rerum.

Veniam possimus qui et cupiditate. Voluptas nihil voluptatum et perspiciatis fuga.

Quibusdam cum illo dolorem in rem. Aut debitis fugit maxime a quos deleniti.

Career Advancement Opportunities

July 2025 Investment Banking

  • Goldman Sachs 01 99.5%
  • Evercore 07 98.9%
  • Moelis & Company 04 98.4%
  • Citigroup 11 97.8%
  • Houlihan Lokey 08 97.3%

Overall Employee Satisfaction

July 2025 Investment Banking

  • Evercore 10 99.4%
  • Moelis & Company No 98.9%
  • RBC Royal Bank of Canada 03 98.3%
  • Houlihan Lokey 14 97.8%
  • Morgan Stanley 02 97.2%

Professional Growth Opportunities

July 2025 Investment Banking

  • Evercore 08 99.5%
  • Moelis & Company 01 98.9%
  • Houlihan Lokey 11 98.4%
  • JPMorgan 01 97.8%
  • Goldman Sachs 01 97.3%

Total Avg Compensation

July 2025 Investment Banking

  • Vice President (14) $321
  • Associates (60) $237
  • 3rd+ Year Analyst (9) $210
  • Intern/Summer Associate (14) $167
  • 2nd Year Analyst (33) $166
  • 1st Year Analyst (99) $145
  • Intern/Summer Analyst (100) $103
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
98.9
5
DrApeman's picture
DrApeman
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
kanon's picture
kanon
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”