Buyside offer of Non-bank loans investment, is it private debt secondary or structured finance?
Hey guys, I am a graduate student and have done internship at Corp M&A, private debt LP and venture capital funds (in EU).
I recently received an offer from a credit fund (with strong ABS investment history) called Dynamic Credit, the team that I will join are mainly investing in portfolio of consumer loans / SME loans (can be single-loan based as well but not often, according to the interviewer) from non-bank originators (mainly P2P platforms for now). The fund AUM is around €10 billion, while for this new strategy they target at €1-2 billion.
They told me that the job consists of: 1). due diligence on lender, this part is slightly like equity investment DD like I did in previous internship; 2). modelling on a LARGE data tape, like a portfolio of 10,000 consumer loans, so might need programming, analysing loan cashflow and sensitivity analysis; 3). on-site negotiation of terms / covenants with lenders.
I find the strategy itself interesting, but not sure if it really fits me, as I target at traditional private debt / private equity positions in long-term.
I don't even know where should I put this strategy in? Is it private debt secondary or structured finance? Will it be a solid base for future career in PD/PE?
Besides, the fund structure is a bit weird, analyst - associate - portfolio manager (even the founder himself is PM), so very different from traditional PD fund structure.
bump
I think the job sounds interesting (work in a similar/adjacent area of private credit myself) but likely isn’t what you’re looking for if you want more of a traditional private debt/equity role. The modeling and other work it sounds like you’d be doing would fit much more into structured finance/asset investing/specialty finance roles.
You’d definitely be doing diligence on the loan sellers but I’d assume more from the perspective of understanding their underwriting and services procedures and high level financials to make sure they’re well enough capitalized to service the loans you buy.
Thanks a lot for your insight! I accepted the offer, I guess I shouldn't be too picky now as most shops already stop recruiting analysts and interns.
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