Leveraged Lending to PE?
I’m a little over a year into a leveraged lending analyst role and am interested in getting to PE. Would firms consider my background or would I need to lateral to another role beforehand to better position myself?
Trending Content
| +91 | Sr Asso / VP Unemployment Check-in | 56 | 10h | |
| +33 | What did you do after signing? | 11 | 5h | |
| +25 | Resume Gap after 2.5 Years in PE | 5 | 1d | |
| +23 | PE Recruiting From IB- Play It Safe Or Reach For Best Fund Possible? | 10 | 8h | |
| +21 | Public company LBO | 7 | 2d | |
| +20 | Vista Lateral Associate | 12 | 3d | |
| +18 | VP HF Lateral to PE | 1 | 2d | |
| +17 | PE / IB in NYC from Cambridge compared to US colleges | 5 | 9h | |
| +16 | How Technical Are You / Most People Really? | 3 | 2d | |
| +16 | Management Meeting Dynamic | 3 | 5h |
Career Resources
Based on the most helpful WSO content, transitioning from a leveraged finance role to private equity (PE) is not unheard of, but it may not be the most straightforward path. Here's why:
The primary focus in leveraged finance is on the credit worthiness of the business. This means you might not have as much experience in assessing the equity story behind a prospective investment, which is a key aspect of PE.
While the due diligence in a leveraged buyout (LBO) process is intense, the most thorough exposure you will get to a private equity house and their investment process is if you’re in the M&A / sector team and acting as buyside M&A advisor. This role is likely to be more useful in helping one to transition to PE.
However, there are some aspects of your experience in leveraged finance that could be beneficial:
Your credit experience could be useful in PE, as understanding the financial health of a company is important in this field.
If you're involved in the financing of LBOs, you will conduct largely the same analyses as the PE firm investing in the equity. This could make your transition to PE more tangible.
In conclusion, while it's possible to transition from leveraged finance to PE, you might find it beneficial to gain some experience in a role that offers more exposure to the equity side of transactions, such as M&A or sector team roles.
Sources: Leveraged Finance – 2017 Update, Credit Fund to PE: Is it Doable, Private Debt/Direct Lending Exit Opps?, Q&A: BB LevFin - Mezzanine - Opportunistic PE
Earum odit sit illo voluptas ratione cum. Facere rerum possimus quae nesciunt ut. Architecto non voluptatem similique magni. Aut fugiat tenetur beatae velit illo id molestiae quisquam. Occaecati nihil dolorem neque debitis. Nisi est sit eligendi impedit consectetur.
Molestiae distinctio molestias culpa ullam impedit explicabo autem. Porro ut cum esse. Ducimus ut vero amet quisquam nam.
Dolor rerum dolores dicta non eos recusandae porro magni. Nihil necessitatibus est explicabo assumenda explicabo quasi ut. Dolorem est suscipit voluptatum sit. Necessitatibus et quo quia non quam odio. Id maiores quaerat minus officia aliquid animi recusandae. Rerum at repellat perferendis consectetur debitis.
Dolore cupiditate provident eos at facere quibusdam. Nisi excepturi iste et harum dolore officia voluptas. Error atque natus aliquam nulla cum nesciunt. Et rerum culpa doloremque quia incidunt repudiandae. Sequi fuga rerum voluptatem qui aut est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...