IB -> Corporate / Commercial Banking or Private Lending
Current second year analyst at a large MM bank (ie jefferies, Blair, HL) that is burning out. Not only from an hours perspective but the work itself isn’t all what it used to be starting out. I still love seeing new companies and business models but going too beyond that initial introduction and work I begin to feel very apathetic about the work. Listening to the same buyer questions on deals over and over and coordinating diligence just isn’t doing it for me, and on top of that I know in the long term that my personality is not a fantastic fit for IB or PE. I also know that I will want and need to tone down my hours significantly (currently 80-90) for other things in life like starting a family and spending more time with my parents while they’re here.
The question then becomes where to go if not PE. I know that I don’t want corporate development just given the semi regular stories of disenchantment that I’ve heard and read, and hours can ratchet up like crazy if you’re at a high paying acquisitive company.
What about commercial or corporate banking though? Seems like a way to stay rotating among cool companies and seeing business models which I find interesting without the hours (also understand the pay cut, especially with commercial but unsure how large of a cut that will be). Has anyone made this transition? Was it easy? Do you regret it? Have you found the skill set in IB has helped you rank well among your peers at the commercial or corporate bank? What rank did you come in under?
Then what about private lending? Places like Monroe, Deerpath, Golub, etc. Seems like the hours here are relatively great (50-60) and that the pay cut isn’t nearly as significant. Still get to see cool assets come by for review also.
Appreciate any and all opinions and insights. Thank you.
Sounds like MM DL would be a good fit, especially at a firm that moves faster by taking advantage of the sponsor's DD. Depending on firm and mandate, you also get to do more creative/interesting things than bank loans.
Thanks. I think so too. Are you aware of any headhunters that focus on these DLs? Or how their recruitment cycles work and differ from traditional PE?
Also curious if you have some insight as to who the ones doing lighter DD are... I’m aware of a few names in the space but blind as to where it’s great to work and where else the culture may have rougher edges
All the usual suspects for HH - if you're looking for better hours obviously don't go for the MF-style funds. Unfortunately I'm focused on a niche vertical and can't give you concrete advice on more generalist stuff.
If you want a really great lifestyle and are okay with only doing senior secured, you should also look into private placement debt groups at insurance companies. All the major names have investing arms.
bump
have you considered asset management? good pay, good hours and still learn multiple business models
It’s crossed my mind but I just don’t have much if any real interest in the public markets (and admittedly my knowledge of AM is limited so there may be pockets of it that aren’t public markets focused but I’m not aware)
Not the most qualified to answer, but I spent a summer in MM DL at a shop similar to the ones you mentioned. I'd say hours are closer to 60-70 and could hit 75 if a sponsor needed commitments in a short turn around or if you hit some kind of snag while doing DD. Still, much better than 80-90 and very interesting work (if you enjoy the DD process, which I did).
Hey thank you for responding, do you have a few thoughts on culture overall at these places given the backgrounds of folks that join these firms? I get the sense it’s much “lighter” on average compared to PE in the sense that people don’t embody this edgy finance personality you commonly see in IB/PE but I could be totally wrong there lol
Culture is typically more laid back but I wouldn't jump to a private credit shop expecting to work 50-60 hours. Anecdotal but from my experience baseline is 60+ with ~70+ being typical. Normal PE hours if theres a quick deal or amendment.
Don't get me wrong, those extra 10-20 hours a week make a huge lifestyle difference but expecting consistent 50-60 hours a week without taking a significant pay cut or having some exceptional skills seems overly optimistic to me.
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