Loan Syndications Exits
Got an offer to join a major balance sheet bank (Japanese) in its loan syndications team, primarily working on origination. I come from a credit analyst background and was told primary tasks would include pitching, structuring deals, discuss covenants etc.
What would be some common exit opps from here? I see no modeling done, limited financial statement analyzing and quite don't understand why they pay so much for this role.
Please correct me if I'm wrong!
Also curious
What’s the comp?
110k as 2nd year analyst. I know some BBs pay their front office folks (corp/bankers & syndications) 125k for 2nd years, so slightly below market i guess.
Since you come from credit, loan syndications is a nice break into the front office.
Basically, all large banks have a loan syndications team. It’s a fancy term of pro rata or revolver loans, mainly focused on IG companies. Sometimes these groups encompass short term paper programs as well.
It’s an awesome place to be if you’re not obsessed with prestige and compensation. You don’t work long hours, your base is solid and I’ve rarely seen cuts on those teams.
I used to work in credit risk for a commercial bank with a decently sized syndications book. Most of the folks in that group considered syndications the "exit" and were not looking to move anywhere else. Our desk was mostly made up of burnt out investment bankers who decided WLB meant more to them than pure comp. I did see a few exits, I saw one move into a corporate dev role, another into a corporate banking role, and another into an operations role with a small boutique bank. Your mileage could definitely vary though, this was a midsize bank with little name value.
Thank you sir for your insights. Would you say it's a good start for a career? Saw this job lumped in as investment banking (DCM) for BBs, so wondering if the exposure is half as good.
I'm not in IB, nor do I want to be, so my opinion may differ significantly from others on this board. That being said, I think its a pretty great career option! Syndications actually has a work life balance at most banks, pays decently, and is a sustainable career. Conversely, if your goal is to work at Blackstone, KKR, etc, syndications isn't going to be the ideal start. Just depends what you want.
IB coverage if you can model or else DCM as career banker. Also, received some offers from capital market team at fintech companies and credit funds.
A question I have is, at the bank I come from, the pitch book consisted of an analysis about the company (borrower) put together by corporate banking along with analysis on industry trends, financial statement analysis, valuation (IB) etc. I know this may vary across banks, but what exactly do syndication/loan origination analysts work on when putting together pitch books? Do they do any sort of financial/company analysis at all?
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