Outlook / opinions on LevFin for 2022-2024
Just received an offer for a top LevFin group (I believe?) and considering leaving MM M&A for it. I'm interested in debt and hate my VPs.
Few questions below:
1) Is it a bad time to go into LevFin / debt generally given tightening policy & recession risk? Seems the broadly syndicated markets have been down on a volume basis like ~70% YTD. Banks can't sell credit anymore. Nobody has cash so sponsors are just going to direct lenders. Mainly concerned about just getting some good deals under my belt before recruiting after a couple years
2) What are the top groups? Have heard JPM / BAML but LinkedIn is showing some questionable exits from BAML recently. Who else does well in the space specifically for sponsor LBOs / modeling / general origination?
3) Where can I exit? I'm aware credit funds is the easy answer but is classic buyout PE still doable? Also fuzzy on the spectrum of HF exits - I follow equity markets quite closely and might want to think about L/S equity sometime in the future. Wondering if LevFin would pigeon-hole me into distressed/HY credit funds
Thanks!
I left BB levfin few months ago to go to a special sits shop. People say I timed it perfectly (I had no clue looking back it just felt like a good opportunity to do something different) - banks are full and cannot add risk on their balance sheet and they also cannot really syndicate deals in this market (or bleed money). People are turning to private credits which still prices deals at L+650 (although hearing LPs being fatigued with that crowd).
Hearing my old team is looking to cut costs so not great timing to join if you want my opinion.
On your exit point - LevFin will have a wide range of exits - some guys will go to DL shops, some will go to PE (seen guys to go Carlyle, Veritas, etc from BofA/JPM), others will go to more special sits type shops. L/S equity however is quite unlikely.
Following
LevFin is a cyclical business. That said, they're unlikely to hire someone and then shortly after can them. If you're able to sit out the next 18 months without expectations of a great or even average bonus, might be okay but it's dead as a doorknob know in terms of flow.
Incoming LevFin analyst so also wondering how worried I should be about job security
Isn't JPM lev fin more of a capital markets group (i.e. they don't own any of the modeling which is held by the coverage group and/or M&A team)
Classic buyout PE is -able at JPM (given the brand name) but you'll need to do some self studying. Unsure on HF exits
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