Leveraged Finance full-time recruiting?
Target school rising-senior and incoming commercial banking generalist SA at JPM. I picked it because I’m interested in learning about direct lending/credit broadly. However, I’m really curious about the debt markets and think I want to pivot to something like leveraged finance where debt is placed into the capital markets.
I understand investment banking summer analysts usually get the first looks for full-time recruiting, but I’m wondering if commercial banking would still be a relevant starting point. I figure the cash flow modeling and underwriting would somewhat transfer over, but I’m looking for advice from anyone who’s made this transition in the past or knows anything about this transition. Unfortunately I foolishly stopped networking after I accepted my SA offer, so I don’t really have strong connections at other banks from whom to ask for references/contacts.
Based on the most helpful WSO content, transitioning from a commercial banking summer analyst role to a full-time position in leveraged finance is possible, but it requires strategic planning and effort. Here are some key insights and actionable steps:
1. Relevance of Commercial Banking Experience
2. Networking is Critical
3. Positioning Yourself for Full-Time Recruiting
4. Leveraged Finance Recruiting Timeline
5. Additional Considerations
By focusing on networking, emphasizing your transferable skills, and staying proactive in your job search, you can position yourself as a strong candidate for leveraged finance full-time roles.
Sources: Leveraged Finance – 2017 Update, Q&A: Non-Bank Commercial Lending, Leveraged Finance – 2017 Update, https://www.wallstreetoasis.com/forum/other/commercial-banking-relationship-manager?customgpt=1
Bump
Bump, gl
I’d like to think nothing is impossible from a target, but you HAVE TO network. You also need to be extremely knowledgeable on HYB and leveraged loans - there’s a great primer from pitchbook.
I’d also try to find both LBO and Refi case studies and understand those front and back.
If you come in extremely knowledgable there, network, and have a good “why IB/why Levfin”, then you should for sure be able to find a seat, even if it’s at a lower tier bank. Only thing I would say, is to make sure the bank has a syndications team within the Levfin Originations group. This will allow the bank to lead mandates which will broaden your experience and make you eligible for buyside recruiting, even if the group does little modeling.
Thank you for the color and the nuance with syndications—definitely something good to know. Do you think it’d be useful to also recruit for DCM FT roles as well, if I’m interested in LevFin? Are either more receptive to commercial banking / credit interns?
Yes, 100%. While Levfin teams will only work with the private placements arm of DCM (which is a completely separate arm/division in some banks) Levfin teams view the DCM workflow as fundamentally adjacent, although not as analytical.
One thing I will note is that the move to buyout or Growth Equity funds will be nearly impossible starting in DCM, unless you make the switch to Levfin before the 1 year mark, and then even still should probably try to then jump to an M&A/Sponsor Coverage group before year 3 if you’re at all serious about PE. Opportunities within PC, Mezz/distressed/opportunistic credit funds and even HF should all still be available given you can market yourself well after yr 2-3.
To answer your question though, DCM should allow for a quick Levfin lateral given you can provide solid reasoning for wanting to move to the high yield/sub-prime side of lending, which should be an easy answer given 80% of the deals are focused around acquisition/backdrop/recap financing, which typically surrounds a major corporate/sponsor strategic decision and often include a cap structure advisory mandate, as opposed to general repricings, refinancings, and general corporate purposes.
If you are worried about commercial banking, I know I'm n=1 but I landed FT with an FP&A internship, not even banking related.
To add on, at least you'll have the pro of being able to talk something related to credit whereas I was giving the most unrelated experiences from my internship throughout my process.
Congrats! If I may ask, what’d your recruiting process look like and what do you think were the biggest factors that led to your success?
If you're OP, I saw you mentioned DCM above and that's what I landed in from FT recruiting (I know title is Cov but ignore, I have that because it's more general and don't want to ever accidentally dox).
I can't speak heavy to LevFin, but targeting DCM worked out for me. What helped me in my recruiting process was staying targeted and being realistic and I had a niche interest in credit when looking at the overall IBD sector so it was very relevant to speak to that knowledge throughout my process.
FT recruiting is difficult and everybody will tell you that but it definitely isn't impossible. It's high-stakes so just make sure there's no room for mistakes, and you don't slip and target your outreach effectively. I think you coming from commercial banking makes a good fit if you can speak very well to why you didn't SA in IB and why you think you are a good fit for their group.
If LevFin is of interest we have a few primers and blog posts. Generally speaking having a credit related internship or role is a good start. I cant speak for JPM but with some banks there are internal lateral opporunities and you can build a story around your path when recruiting.
Besides that just be prepared when the interview comes, learn as much as possible, network and take all chances out there.
Actually read your LevFin primer a while back, and just read the Credit Analysis one. Subscribed to your LinkedIn page just now, will continue to follow!
Re: getting interviews, do you generally see that credit interns are well received during LevFin FT recruitment processes? The hardest part during summer analyst recruiting was getting the interviews themselves. Also, is my understanding that securing a return offer from my commercial banking internship is the #1 most important thing when it comes to full-time re-recruiting? That’s what I hear when I read advice given to MM IB interns looking to re-recruit for BB IB FT
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