What do people think of Asset Based Lending?
I recently received a job offer from a BB in NY in an ABL product group. Any information about a typical ABL group analyst exit opportunities, placements into B-school out of similar groups, bonus, and lifestyle would be helpful.
Thanks.
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Get at it. PM me if you have specific questions.
bump. can anyone shed some light on hours/pay and typical transactions
Hours/pay are more commensurate with the commercial banking model. 45-60 hrs/week @ 55-65k as a starting analyst. Obviously it's different if you work your way to the sales roles.
Typical bread n butter transactions are not too tough/exciting, lending on A/R, inv, and sometimes M&E or RE. There are deals that are different though (energy deals, equipment rental). Exit opps? I've known people to make the move to IBD or commercial, not PE though. Pretty sure you do need ib experience for that.
ABL is a good gig, doesn't suck up your life, is rewarding and you learn a lot. I would recommend.
The exciting side of ABL is distressed credit IMO.
Is 55-65 base? Is bonus 100% of salary?
Not even close to that. Think 5-15% at entry level.
Great exit opps?
Mid level RM in ABL makes $120-130k base with a bonus target of 20-30% at the bank where I work. That is going to be ~5-7 years in.
None of these are correct...ABL is a capital markets function within an investment bank. They are very similar to LevFin and work a lot with LevFin but do ABL and Debtor in Possession deals instead of HY and Leveraged Loans. They often work long hours and make as much as any other Capital Markets Group. It is a really interesting market to be in especially if you get to work with the most distressed companies going thru bankruptcy.
Source: I have many friends in ABL at a BB.
This can vary from bank to bank. Some banks view ABL as a stand-alone group while others view it as a product within a LevFin or Commercial Banking group. Generally agree with your comment on exposure to distressed companies though.
This. Frankly, it sucks that at some banks it's housed under IB (with corresponding IB base pay) while at others it falls under the commercial banking umbrella (with corresponding lower base pay) ..
Does someone know how are the major players in ABL ??
Bank of America, Wells Fargo, JPM, and PNC.
I would put Citi up there as well. But agreed with the ones you listed.
Asset Based Lending Exit Opportunities ? (Originally Posted: 10/13/2015)
Hey there guys, So I am going to be going into Asset Based Lending for a MM bank. I was just curious what my exit ops are. I'm going to be a field examiner I believe for the first few years. Whats the bonuses like? what are the raises like? Most impertinently what are my exit opps. I hear horror stories of getting "Stuck" I would like to work in Investments or a mezzanine fund or something.
bump ...
If you're right out of college and you land a field examiner (auditor) position, that is a very good start for someone who's looking to break into commercial banking or asset based lending. Since you're straight out of college it won't pay a whole lot however the experience is invaluable. You get to visit and learn about different companies from all over the country. You gain valuable insight in auditing the inventory, receivables, cash and taxes of a company. I began as a credit analyst at a large NY bank before moving up to a VP of Underwriting (at another bank), however, the field examiner guys we hire as junior underwriters come in with good insight when it comes to collateral analysis.
Asset Based Lending ? (Originally Posted: 10/06/2015)
How is asset based lending for middle market? What are the exit opps ? can i still get into Private equity or any mezzanine type fund ?
AM or Mezz funds dealing with lower tranches are most likely exit ops. The lack of larger experience is unattractive to most PE firms, outside of boutiques.
Cool position though. You get to dig into a lot of businesses that you can relate to since they don't have overly complicated supply chains.
Ive been applying for a lot of mezz/cf lending/equity funds and hedge funds and receiving interviews but no offer to any avail. I do know I get formal credit training and sales and product training as an analyst in ABL. How beneficial will this skill set be for the future?
I'm just afraid ill never get into the field I want in finance due to my low gpa. (Full time student working part time ~30 hours a weeks =T ... )
bump? I have the same concerns... in the same position.
The ABL world encompasses various types of lending: A/R, inventory, equipment, P.O., SBA, real estate, life insurance or any asset that has a reliable and measurable liquidation value. Mezz debt typically takes a second lien behind the primary ABL lender, so you do have the potential to move into that world. Private Equity is more concerned with investments in private companies, some skills might be transferable, but most firms are looking to hire from within the industry.
Insight on collateral/asset based finance? (Originally Posted: 05/05/2007)
edited
this actually seems like an interesting position. I find asset backed / collateral financing very interesting - alot of ingenious stuff is done. dont know anything from the DCM side of things, but I definately think this is a legit position and not 'settling' but any stretch of the imagination.
i think this is a good niche area that will never go away as long as there are assets to secure. you can become an expert in a very small field which is a very good thing.
I think this sounds better than banking. but what do i know , i dont do either.
Thanks for the input - anyone else have any suggestions/comments? Would really appreciate some compensation info about these type of positions
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