Private credit vs. secondaries
Seems like both secondaries (GP-led, LP-led) and private credit (direct lending, mezzanine) are good alternatives to direct equity career paths. If you had to compare, what are the pros and cons of these jobs?
- Pay / WLB
- Industry outlook
- Technical skillsets required
- Exit
Would like to hear your thoughts. Has anyone experienced both? Thank you.
Secondaries typically produces capital gains (provided the underlying assets acquired aren't loans) so it would be better from a carry perspective. Credit funds are naturally shit for carry since it produces income.
Secondaries have more opportunities for growth and more funds are creating secondaries divisions.
Credit is more cyclical where as if the secondary strategy is buyout and growth you can buy in more environments. Rates are high now so it's good for credit but they will eventually come down.
Biased because I’m in secondaries but I think it’s a really interesting asset class with a lot of opportunity. Pretty niche part of the market but it’s becoming more institutional.
I do a bit of both in my role. I find secondaries far more interesting FWIW, credit docs are boring AF
Bumping this, anyone have insight on what comp looks like at a top fund at the Asso level ?
Either US or London, but specifically looking for Ldn comp.
Credit WLB is no better than Equity.
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