FIG IB to RX IB/Distressed PE

Transitioning from FIG IB (Financial Institutions Group Investment Banking) to RX IB (Restructuring Investment Banking) or Distressed PE is indeed a realistic path, but it comes with some nuances. Based on the most helpful WSO content, here’s what you need to know:

1. Relevance of FIG Experience

• FIG IB experience, particularly in specialty finance or banks coverage, can provide a strong foundation in understanding complex financial structures, regulatory environments, and capital markets. These skills are valuable in RX IB and Distressed PE, where analyzing distressed assets, debt structures, and turnaround opportunities is critical.
• However, FIG IB tends to focus on financial institutions, which may not always overlap with the broader industries covered in RX or Distressed PE. This could require you to demonstrate transferable skills and a strong interest in distressed investing.

2. Path to RX IB

• Moving into RX IB from FIG IB is feasible, especially if you can highlight your analytical skills, experience with complex financial models, and exposure to restructuring scenarios (e.g., capital raises, debt refinancings).
• Networking is key. Many RX IB teams value candidates with a demonstrated interest in distressed situations, so leveraging connections and showcasing relevant case studies or deals can help bridge the gap.

3. Path to Distressed PE

• Distressed PE firms often look for candidates with RX IB or restructuring experience, as these roles provide direct exposure to distressed assets and turnaround strategies.
• While FIG IB may not directly align, you can position yourself by emphasizing your ability to analyze financial distress, understand debt structures, and identify value in complex situations. Gaining some RX IB experience first could make the transition smoother.

4. Broader Exit Options

• Outside of traditional FIG PE/HF, FIG IB professionals can explore:
  • Special Situations Investing: This includes funds focused on unique opportunities like non-performing loans, lease financing, or distressed M&A.
  • Credit Investing: Many distressed PE shops also play in the secondary credit market, focusing on high-yield bonds or loans with control angles.
  • Turnaround Consulting: Firms like AlixPartners or Alvarez & Marsal often value FIG IB experience for roles in operational restructuring.
  • Corporate Development: FIG IB professionals can transition into strategic roles within financial institutions or fintech companies.

5. Key Considerations

• Skill Alignment: Highlight your ability to work with complex financial instruments, regulatory frameworks, and distressed scenarios.
• Networking: Build relationships with professionals in RX IB and Distressed PE to understand their expectations and hiring processes.
• Supplementary Experience: If possible, gain exposure to restructuring or distressed situations within your current role or through side projects.

In summary, while FIG IB may not be the most traditional feeder into RX IB or Distressed PE, it’s a realistic path if you can effectively position your skills and experiences.

Sources: Why Should I Work in FIG Investment Banking?, Distressed vs. Credit vs. Special Situation vs. Turnaround PE, Distressed / Spec Sits vs Regular PE, Mistake to join a Distressed HF now?, Distressed vs. Credit vs. Special Situation vs. Turnaround PE