Private Credit LP Role to Direct Investing Role
Hi all, I’m currently a senior in undergrad and just accepted a full time offer as an analyst at a private credit Fund of Fund / LP role with some co-investment and secondaries exposure. I interned on the team last summer and culture/wlb was great and I loved the team. Ultimately, however, I want to be in more of a direct investing role within private credit. I don’t want to recruit full time now and have to renege and ruin the relationships I’ve built, but definitely want to make the switch asap.
I just wanted to know if it would be feasible to make the switch directly from an LP role to something like an associate at a private credit shop, or would I have to take a stint in banking first to develop technical skills? Also would appreciate advice on when/how I should approach recruiting.
I have seen ppl switching to IB/LevFin after 1 year and also seen switch to Private Credit GP side as an Analyst after 1 year.
I dont think it will be tough if you switch within a year or so (atleast my shop doesn’t penalize) and can talk intelligently about the deals the LP invested and know how the LBO works.
Would you say it’s easier to go directly from LP to GP, or would banking be the easier route? I think the main concern here for me is that I feel I might not be able to develop the technical skills a GP would look for, so IB may be helpful in that area.
IB (specifically LevFin for private credit) will be helpful but transition will be tougher given return offers and available spots.
It also depends on your shop. I know few LP shops that do a good amount of diligence so that is still a good experience if you are involved in that as a first year analyst
If I go IB route, obviously LevFin would be ideal, but what about DCM or a coverage group?
No. Not worth it imo. Too far removed from where you want to be. The only option id consider is a direct private credit shop or levfin role..
you could probably lateral from DCM to Levfin to private credit but I could say the same for co-investment to direct private credit
Got it, really appreciate the advice man. Also, what abt RX?
In this industry, few things alter your odds of getting into a certain lane more than how you start things off. If you’re ultimate goal is to be in a direct credit investing role, you may be making it harder on yourself working at a fund of fund. I know it’s a lower risk decision because it’s an offer at hand, but unless this is what you want to do long-term, you may want to consider the implications.
I appreciate the advice. I don't exactly dislike what I would be doing in the Fund of Funds role, WLB and Culture are great, we do work on some co-investments and secondaries, but the majority of work is not as mentally stimulating as I'd like it to be, which is why I want to make the switch. I'm still working part-time right now there while I do school, and I have built pretty good relationships at the firm, so I don't want to renege. Would you say it would be realistic to directly to an associate role at a private credit shop after 2 years, or go IB after a year and then to private credit?
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