Exiting to distressed fund
Hi All,
As I am going through recruiting, I have become interested in distressed investing. Is it possible to exit to a distressed fund from an M&A group rather than RX or levfin?
Thank you.
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If you go to a bank with relationships with headhunters that represent distressed funds, then yeah it's possible to exit to a distressed fund. You don't see this happening extremely often because (1) M&A analysts don't tend to want to exit to distressed, which influences how headhunters treat M&A analysts by default, (2) you'll have to convince headhunters why you're both passionate about distressed investing and good at it so that they'll give you interview opportunities, and (3) you'll have to convince the distressed shop why they should hire a kid who won't have directly relevant work experience (RX) for the next few years. To the last point, you can do this by displaying your passion and talents for distressed investing in the interview, but sometimes candidates won't even make it that far b/c the firm or HH will just decide to not interview you.
Also worth noting that a lot of distressed shops recruit off-cycle, save for maybe the huge ones. This'll mean maintaining HH relationships or networks inside those funds OR just hoping they pick you to interview, which is a lot more difficult because you're in M&A and not RX
What about exiting to a distressed fund from a cross-capital structure direct lending role with exposure to RX and BK’s?
I can't comment with certainty as my experience has been limited to on-cycle / off-cycle banking recruitment, but I've seen laterals to distressed recruiting opportunities from credit analyst roles from my peers. In general, experience with credit analysis especially when investing in distressed credits is never a bad thing, it's just the recruitment opportunities will require more networking unless you're already at a very well-known shop - to which I would ask, why leave?
Its possible but Lev fin/RX are the more natural teams that HH will target and the skills are the most transferable from those groups
You are interested because you saw the big fundraising efforts for some big distressed funds?
No I read Moyer and find it quite interesting regardless of our current environment.
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