Direct Lending/Opportunistic SA to IB FT 2025
Hi everyone! I was hoping to get some advice from the forum on FT IB recruiting from a DL/Opportunistic Credit group for Junior SA (think GSAM/Golub/Blackrock). I am ideally hoping to get a FT RX seat but I know those can probably be counted on one hand. How should I go about networking and crafting a story for coffee chats and interviews?
The honest reason is I worked at a ~4bn credit hedge fund sophomore summer and thought I could bypass banking. Realized the long-term prospects at the fund were not great about 2 weeks into the internship and scrambled to find something for junior year and with most banking closed this was the best I could do. I really want to do value-oriented PE long-term (turnaround/loan to own/distressed/Apollo-style) and have been told banking is the path of least resistance by a large margin.
Questions:
1. Do I frame this story in a better way or come up with something from fairy tale land?
2. How are my prospects for good groups (consistent exits to MM and above PE)? Wouldn't want to do IB just for the sake of it and would use current seat as a floor.
3. What does the interview process look like (interviews, modelling tests?)
TL;DR - DL/Opp Credit SA, want to do FT IB at a decent group, advice?
Based on the most helpful WSO content, here's how you can approach your transition from Direct Lending/Opportunistic Credit to Full-Time Investment Banking, particularly aiming for a Restructuring (RX) seat:
Crafting Your Story: Your story should highlight your early exposure to the finance industry through your internship at a credit hedge fund and how it shaped your career aspirations. Emphasize your realization about the limited long-term prospects at the fund and how this led you to pivot towards investment banking as a pathway to value-oriented private equity. It's crucial to frame this narrative as a journey of discovering where you can make the most impact and learn the most, rather than just a fallback plan.
Networking Strategy: Start by leveraging any existing connections you have in the industry. If you don't have direct contacts, reach out to alumni from your school who work in investment banking. Prepare for these conversations by being knowledgeable about their firm and the industry. Express your genuine interest in RX and ask insightful questions. Regular follow-ups to keep you top of their mind are crucial.
Interview Preparation:
Prospects for Transitioning to Good Groups: Your background in a credit-focused role can be quite beneficial, especially for groups dealing with distressed assets or restructuring. Highlight how your experience has equipped you with a unique perspective on value creation and risk assessment. Your prospects will largely depend on how well you can leverage your past experiences in interviews and networking opportunities.
Positioning for Private Equity: Make it clear that your end goal is to move into value-oriented PE. This will help interviewers understand your motivation for moving into IB. Being upfront about your long-term goals can also help you gauge whether the IB role will indeed offer the learning opportunities and exit paths you are looking for.
Remember, transitioning from a specialized role like Direct Lending/Opportunistic Credit to investment banking requires a clear narrative that connects your past experiences with your future aspirations, solid technical preparation, and strategic networking.
Sources: Guide for Investment Banking Full-Time Recruiting, Lost job at L/S HF - looking for advice, Networking into a Hedge Fund? It's Unstructured., Law to Investment Banking (One Monkey's How-To Guide), A Guide for Switching From Commercial Banking to Investment Banking
damn. no replies at all huh
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