On-cycle for Credit?

How many private credit and opportunistic ss lending shops are taking people during on-cycle? Have historically heard that it's more common for private credit shops to only start looking at people after their 1st year with a bank, but have heard some people say that's starting to change.

For people at credit shops, would you recommend sitting on-cycle out if you're undecided on the type of group you want to be at? Or do you think there's a meaningful enough amount of seats filled during the process that it's worth making up your mind.

Also, If I haven't responded to any headhunters yet, is it:

1) Too late to try to jump in the mix for on-cycle

and

2) Necessary to have a strict stance on whether I'd rather be at a vanilla direct lender versus somewhere that's more opportunistic / investing across the capital stack, or even something more distressed or SS adjacent?

11 Comments
 

Based on the most helpful WSO content, here's what you need to know about on-cycle recruiting for private credit and opportunistic special situations (SS) lending:

On-Cycle Participation for Credit Shops

  • Historical Trends: Historically, private credit shops have tended to start looking at candidates after their first year with a bank. However, there are indications that this trend is beginning to change, with some shops participating in the on-cycle process.
  • Current Trends: The exact number of private credit and opportunistic SS lending shops participating in on-cycle can vary, but there is a growing trend of these shops starting to recruit earlier.

Recommendations for Undecided Candidates

  • Sitting Out On-Cycle: If you are undecided on the type of group you want to be at, it might be wise to sit out the on-cycle process. This allows you more time to gain clarity on your preferences and avoid making hasty decisions.
  • Meaningful Seats: There are a meaningful number of seats filled during the on-cycle process, so if you have a clear preference, it might be worth participating. However, if you are unsure, waiting might be beneficial.

Responding to Headhunters

  • Timing:
    • Too Late?: If you haven't responded to any headhunters yet, it might be challenging but not impossible to jump into the mix for on-cycle. It's crucial to act quickly and reach out to headhunters as soon as possible.
    • Strict Stance: It's not necessary to have a strict stance on whether you'd prefer a vanilla direct lender versus a more opportunistic or distressed role. However, having a clear idea of your preferences can help you better navigate the process and communicate effectively with headhunters.

Additional Tips

  • Intro Calls: Conduct intro calls with headhunters as soon as they reach out to you. This helps get your foot in the door and ensures you are considered for opportunities.
  • Research: Make sure you have done your research on the firms and roles you are interested in. This will help you make informed decisions and present yourself as a serious candidate.
  • Networking: Engage in networking and coffee chats with associates and VPs at firms you are interested in. These casual chats can lead to interview opportunities and provide valuable insights.

For more detailed advice and personal experiences, you can refer to the following WSO threads: - https://www.wallstreetoasis.com/forum/private-equity/my-on-cycle-experi…</a">My on-cycle experience / guide - https://www.wallstreetoasis.com/forum/private-equity/on-cycle-2025-advi…</a">On Cycle 2025 Advice

I'm sorry, but it looks like this may be out of my ability to answer... maybe some of the links above might help?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Hey! I've heard that private credit shops are increasingly open to hiring during on-cycle, even for those without prior experience. If you're undecided on the type of group you want to join, it might be worth exploring your options during the process, as there are likely to be a meaningful number of seats filled. However, if you haven't responded to any headhunters yet, it's not too late to jump in the mix. It's not necessary to have a strict stance on whether you'd prefer a vanilla direct lender or a more opportunistic shop, but having a general idea of what you're looking for can be helpful. Good luck!"

 
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What if none of the headhunters are showing credit opps during on cycle?

Headhunters might not always advertise all their openings, so it's definitely worth being proactive. You can try reaching out to them directly expressing your interest in private credit on-cycle roles, even if they haven't specifically mentioned them. Additionally, look for firms that have posted analyst positions on their websites and apply directly – sometimes these postings aren't circulated through headhunters.

 

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