Jan 22, 2024

What is recruiting like for buyside credit roles?

Hey everyone,


I'm currently a college senior returning to a LevFin team after graduation, and I enjoyed the work in that role + taking distressed debt investing classes that are interesting. I'm interested in hearing from others in Private or Public Credit (esp. if from LevFin/Rx background) what their recruitment process timeline was, plus the preparation they did because I don't know much about what that route looks like. I appreciate any advice, and thanks!

 

Based on the most helpful WSO content, the recruiting process for buyside credit roles can indeed vary depending on the specific fund and the role you're aiming for. However, there are some common elements that candidates from a LevFin/Rx background might experience:

  1. Initial Headhunter Meetings: As with many roles in finance, headhunters play a crucial role in the recruitment process. They are often the gatekeepers to interviews and opportunities. For those in investment banking or related fields, headhunters typically begin reaching out in October/November.

  2. Preparation: Candidates should be well-versed in financial modeling and have a strong understanding of credit analysis. This often includes being familiar with distressed debt scenarios if you're aiming for roles that deal with distressed assets. Preparation might also involve networking, understanding the specific credit strategies of the funds you're interested in, and staying current with market trends.

  3. Networking: Coffee chats, dinners, and informational interviews are common ways to network and learn more about the roles and firms you're interested in. This can also help you get a foot in the door when positions open up.

  4. Interview Process: The interview process can be rigorous, often involving multiple rounds with technical questions, case studies, and discussions about credit markets and specific scenarios.

  5. Timeline: The timeline can be less structured than investment banking recruiting, and it may take several months. It's important to be patient and persistent.

For someone with a LevFin background, the transition to buyside credit roles can be quite natural given the relevant experience in leveraged finance. Your experience in distressed debt investing classes will also be beneficial as it shows a proactive interest in the field.

As for preparation, it's advisable to:

  • Deepen Technical Skills: Make sure your financial modeling skills are sharp, and you're comfortable with credit analysis and valuation techniques.
  • Understand the Market: Stay informed about the current state of credit markets and familiarize yourself with the types of deals and structures common in the space.
  • Network: Reach out to alumni, former colleagues, or connections who work in credit roles to gain insights and advice.
  • CFA Consideration: Depending on the role, pursuing a CFA could be advantageous as it's often respected in the investment community, especially for asset management roles.

Remember, persistence is key, and leveraging your LevFin experience will be a significant advantage. Good luck with your recruiting process!

Sources: Buy-side vs sell-side path to credit funds, Demystifying The Buyside Recruiting Process, My Private Equity Recruiting Process, Senior Associate Recruiting - Timeline for Recruiter Outreach, Coverage Recruiting Process/Interview prep

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

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

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