LevFin vs. RX

Based on the most helpful WSO content, here's a breakdown of LevFin vs. RX in terms of recruiting prep, interview questions, culture, and hours:

1. Recruiting Prep/Process:

   • RX: Restructuring (RX) interviews often focus on understanding distressed situations, capital structures, and bankruptcy processes. You'll need to be familiar with concepts like liquidation waterfalls, distressed debt investing, and restructuring strategies. RX also involves operational and legal aspects, so expect questions that test your ability to think critically about a company's financial and operational health.
   • LevFin: Leveraged Finance (LevFin) interviews are more focused on debt structuring, credit analysis, and LBO modeling. You'll need to understand how to structure loans, analyze credit metrics, and assess the risk/return profile of leveraged transactions.

2. Interview Questions:

   • RX interviews may include technical questions about distressed debt, bankruptcy filings, and restructuring scenarios. For example, you might be asked to walk through a Chapter 11 process or explain how you'd approach a distressed company's capital structure.
   • LevFin interviews will likely test your knowledge of credit metrics (e.g., leverage ratios, interest coverage), debt covenants, and LBO modeling. You might be asked to structure a debt package for a hypothetical acquisition.

3. Culture:

   • RX teams, especially at top shops like PJT, HL, and Lazard, are known for sharp, collaborative cultures with a focus on problem-solving in high-stakes situations. Hours can be intense, but the work is often intellectually stimulating due to the complexity of distressed situations.
   • LevFin teams tend to have a more transactional focus, working on deal execution for leveraged buyouts and other debt-heavy transactions. The culture can vary by firm, but it's generally fast-paced and deal-oriented.

4. Hours:

   • RX hours can be brutal, especially during active restructuring cases, as you're often working with tight deadlines and high-pressure situations. However, some RX teams (e.g., PJT, HL) are noted for better work-life balance compared to others.
   • LevFin hours are also demanding, but they may be slightly more predictable compared to RX, as the work is more deal-driven and less reactive to crises.

In summary, while both groups deal with debt, RX leans more towards distressed and operational problem-solving, while LevFin focuses on structuring and executing leveraged transactions. Your choice should depend on your interest in distressed situations versus deal execution and your willingness to handle the respective technical prep.

Sources: Recruiting for RX FT after M&A virtual internship?, leveraged finance interview - what to prep, Genuine Question: why are Pjt and HL RX teams considered better than MoCo RX?, How is A&M perceived in the industry?, HL RX vs Moelis