FS & LevFin, what is the difference in the job?

After reading some old posts on the forum, I'm still not clear on a few things. Can someone please shed some lights?

If the financial sponsor group and leverage finance group are separated in a company, what is the difference between the job responsibilities in these groups?

If you work for a company with the two groups separated and you're in the leverage finance group, is the exit opportunity to PE less than those people who work in the financial sponsor group?

Is it correct to say that financial sponsor is the coverage group and leverage finance is the product group?

Your help is greatly appreciated. Thank you

2 Comments
 
Best Response

TYPICALLY financial sponsors is more of a client facing coverage group (akin to tech, industrials, healthcare, etc.) & leveraged finance is a product group. FS (at a decent shop) typically is much better placement due to the interface with PE people. But this is far from universal & it's dependent on the company & fund. At some banks Lev. Fin is looked at as the "back-office of the front office," (cough cough Barclays) as one VP put it.

Lev fin for PE placement is much worse now due to the downfall of the CLO market, but if LBO's pick up next year that skillset may be more in demand. BoAML & JPM are top dogs for lev finance.

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