Leveraged Finance Exit Opportunities
Always been told that Leveraged Finance have good exit opportunities for buyout but recently spoken to a large number of HH and been told that chances are almost 0 to exit to PE buyout.
Anyone else found something similar?
lol what. you must be in a bad group then. my LF group has literally 100% placement to buyout
Sounds like there were other factors that were in play there. For example, recruiter is a douche and wants to push you into a role that they have open so tells you that you'll never get an LBO gig anyway, or, your specific bank sucks and you wanted looks from top MFs and they told you that's not gonna happen. All things held equal LF is one of the best groups for Exit Opps.
Levfin is very bank specific. BoA/CS/DB do modeling and have good exits. But at other banks, it's more of capital market role where they deal with terms, pricing, etc. Probably you're at one of those banks
Don't get me wrong, but have friends in BoA/CS/DB. CS LevFin don't touch PE firms, their FSG team does everything, they are known to be top of the street with best exit, not LevFin. DB don't have an established FSG team in London so LevFin team hold pen in the model but haven't seen MF exit in buyout only credit.
BoA have decent team, a lot focus on Refi, friend told me again that exit is mainly credit. Although have been some nice exit recently in SSG.
Again, this is my views - happy to get any input if you disagree
Yes this is correct. Varies by firm and you need to sus it out. At CS, FSG handles the model and most of the core deal execution, while the LevFin team is more correctly called LevFin Capital Markets, and are more closely tied to the LevFin markets (pricing, terms, structure) and will be involved in marketing / syndicating deals but not in a capacity that builds a directly strong skill set for PE. CS also has a LFOR team which I believe handles debt financed acquisitions for corporates and may have better exits to PE (not certain to be honest). Takeaway is at CS you want to be in FSG for PE exits
Interned at CS FSG, almost all our mandates are run alongside LevFin, we work very closely. They do have exposure to PE shops and HF, just not as much as FSG of course x.
What about gs
Following
So what's wrong with credit exits (assuming you like credit since you work in LevFin)? Don't think many people are aware how attractive these exits can be, especially at some of the top shops:
Very fair points and completely agree with the aforementioned points. However, going into my early career I would atleast want to have the option to go into buyout if I wish down the line
What do you think is the best way to break into credit exits following a stint in LF? Currently at a strong LF group though we do not hold the pen on the models, so credit is likely the most realistic exit. I agree with all of the above advantages.
Should be fairly straightforward as you are in the best possible seat for a credit exit. Get in contact with recruiters, try to familiarize yourself as best as possible with the credit landscape (i.e. what are some of the better firms, or the firms that appeal to you), and start networking.
Incoming analyst in LF and I’m curious what are the more wlb-focused exits available to LF?
What about Barclays?
Bump
Curious about Morgan Stanley’s LevFin practice. Never hear much about them, where do they usually exit?
DB analysts need this thread rn
why is that?
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