Hello all,
I have posted on WSO a few months back and got extremely insightful responses. Hope you’ll be able to help this time as well.
I am a Credit Risk analyst at a bulge bracket investment bank. Given the length of my work experience, I have decided to apply to B-schools this or next year and just passed my GMAT. I always wanted to get an MBA from a top school (at this point it is non-debatable), and I recently thought that a clear path for me after a b-school would be the one in distressed debt.
I was wondering if I could get your feedback on a few things:
- Would getting an MBA be helpful for a DD hedge fund/ internal hedge fund (e.i. Goldman Special Situations)? Any associates you know got their jobs after an MBA?
- Would you happen to know which hedge funds/ bulge brackets with internal funds recruit at top b-schools (Harvard, Wharton, Chicago-Booth, Columbia, NYU-Stern and MIT-Sloan)?
- If you are a post-MBA associate at a distressed debt hedge fund, any recommendations/ advice you could offer?
Thank you, everyone!
I'm behind you on the timeline but I have a similar path insight with credit background and interest in distressed debt...Can't really answer since don't have the experience, but have you tried networking into debt funds and BB distressed debt areas? Do you think with credit experience you couldn't network into a distressed debt type a role within a BB without an MBA?
I am networking and interviewing now, but I feel that an MBA will really help shape my future career and create opportunities that otherwise will take years to create. At this point, I would like to ask for advice and insight on how to network and what to do once I get into an MBA program. MBA programs also want to know why an MBA and I am hoping to gain new insight on the distressed debt opportunities MBA may provide.
1) Sure, buy-side and sell-side both recruit at top MBAs. One of the guys I work for went Target>Lev Fin at a BB>Internal credit management at a BB (basically managing the bank's balance sheet investments in liquid credits)>Top MBA>Top Restructuring Group>Credit Fund.
2) If a company has a formal MBA recruiting process, then they recruit those schools, though NYU and MIT are a step down from the others you listed from what I've seen.
3) Pre-MBA at a general credit fund, but I would recommend that you network your ass off and make sure you have the analytical chops (Modeling, technical knowledge of bankruptcy and restructuring, etc) to be competitive with guys who have pre-MBA experience on the buyside. The market is really tough, and it's far easier to get comfortable with someone with previous front-office experience than taking a leap on someone new. Not sure what your exact skillset is but just want to put it out there.
I'd also recommend getting guest access to Distressed Debt Investor's Club. The analysis on there can be kind of rudimentary because people don't present their whole research but it may still be pretty helpful.
Kenny - thank you for the reply. My DCF modeling skills are up to par with IBD analysts and I will be taking a few restructuring-specific cources in January. I am also interviewing with a few hedge funds right now, so hope to be able to get several months of experience before b-school. I'd love to take bankruptcy and restructuring law/ MBA classes while working on my MBA, and I hope to have a broad set of marketable skills upon graduation.
Any MBA grads went through anything similar?
Thanks again.
Given your international work experience and languages, you seem like you have a good shot at top schools, provided that everything else is in order. You're not a typical finance candidate, so I think you will stand out. And yes, your reasons for wanting to go to b-school are pretty solid.
I'm assuming your ideal post-mba roles are hedge funds like canyon capital, oaktree, avenue, paulson, etc?
Brady4MVP-
you are absolutely correct. My other parts of the application are fairly strong and, given I have a good story to supplement my GPA and GMAT with, I am hopeful. I do realize that I could network my way into a DD hedge funds as is, but a top-MBA will open more doors to top firms as well (correct me if I am wrong).
I read a lot on DD and given extensive credit work with highly leveraged credits, I think my skills would match HF qualifications (but again not up to me to decide). I will be looking at top HF - top of this list:
http://www.distressed-debt-investing.com/2010/12/distressed-debt-hedge-…
Any advice on the rest of the questions?
Thanks everyone so far!
Kenny, good pointers!
Thanks everyone. I have been thinking over my strategy and Kenny made a good point -- given the size of an individual fund ( they are much smaller than BB i-banks obviously), network is still key pre- or post-MBA.
Still would appreciate more advice - I think a lot of us are in the same boat, thinking about our next step, possibly, after an MBA.
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