CB & IB Rotational program choices advice

Based on the most helpful WSO content, here are the recommended rotations to maximize your chances of breaking into low-to-mid tier PE or Private Credit funds:

1. Leverage Finance (LevFin):

   • Why: LevFin will provide you with strong modeling skills and a deep understanding of the loan world, which is crucial for private credit and PE roles. It also offers exposure to high-yield debt and leveraged loans, which are highly relevant for these fields.
   • Skills Gained: Advanced financial modeling, credit analysis, understanding of leveraged buyouts (LBOs), and structuring of complex debt instruments.

2. Debt Capital Markets (DCM):

   • Why: DCM will give you a broad understanding of debt products and the capital markets, which is valuable for any role in finance. It also helps in building a strong foundation in debt issuance and market dynamics.
   • Skills Gained: Debt structuring, market analysis, investor relations, and issuance processes.

3. Restructuring Advisory:

   • Why: Restructuring provides exposure to distressed situations and turnaround strategies, which are highly relevant for distressed PE and special situations funds. It also enhances your problem-solving skills and understanding of complex financial situations.
   • Skills Gained: Distressed debt analysis, restructuring strategies, negotiation skills, and financial modeling in distressed scenarios.

Additional Considerations:

• Project/Infra Finance: This can be a good option if you are interested in long-term, asset-backed financing and want to diversify your skillset. It provides exposure to large-scale projects and complex financing structures.
• Internal PE Fund (Impact Investing): While this might not directly align with traditional PE or private credit, it can offer unique insights into the PE world and impact investing, which is a growing field. However, the lack of carry and high regulation might limit its attractiveness compared to other options.

Summary:

• Top Choices: Leverage Finance, Debt Capital Markets, Restructuring Advisory
• Secondary Options: Project/Infra Finance, Internal PE Fund (Impact Investing)

By focusing on these rotations, you will build a robust skillset in debt products and financial modeling, positioning yourself well for a transition into PE or private credit roles.

Sources: LevFin in London, Q&A: BB LevFin - Mezzanine - Opportunistic PE, Q&A - Infrastructure PE & IBD, Rothschild (LDN) M&A or Debt Advisory/Restructuring?, Switching from 'Industrials' to 'Restructuring'.