Hi guys,
I'm currently a junior/mid level RX banker interested in maybe making a switch down the road into Credit HF land in 1-2 years.
I'm interested in a couple different strategies: 1) buying/selling undervalued/overvalued bonds on the public markets, and 2) event-driven loan-to-own investments + post-emergence investments where you can get outsized returns due to illiquidity/control.
Are there hedge funds out there where you can get exposure to both of these strategies in a particular role or are they typically too separated by expertise? Can an RX banker go straight into this kind of work or would a "stepping stone" in an opportunistic credit seat be required first?
Any thoughts on future trajectory for these two strategies, or insights otherwise into comp/lifestyle or anything at all is also appreciated as information is relatively sparse.
Following
Probably L/S credit
Literally almost nobody has a loan to own strategy solo. Lone Star / Elliott / SVP are probably the closest shops you’ll get to this.
Chiming in with my data though it may be dated as it’s from my time in RX banking in 2015-2017. I was at Moelis then and spent the prior summer at HL FRG. I have seen plenty of junior/mid level RX bankers move to the buyside. Generally it’s either an opprotunistic/public credit seat where they are doing long and short or whatever public credit stuff. Or it’s more private markets / distressed PE loan to own type work. Sometimes they are tasked with just doing RX work but in house for their various loan to own port cos or sometimes it’s kinda like doing PE but with below 6x EBITDA businesses.
Maybe things have changed in the last decade but it seems to have held up from what I can see through LinkedIn and such.
My guess is that at a bigger fund they’ll want you to specialize earlier and then if you advance there and the fund covers both ends of the spectrum you’ll be in charge of both.
If you go to a smaller fund you can wear multiple hats but then the challenge is not many funds can raise capital on such great terms to be so flexible. This may be a better question to ask the current HHs like Robin Judson or whomever is doing well currently. They should be able to give you good color on current and near term outlooks.
Good luck.
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