Quantitative Trader vs Distressed Private Credit/Equity
Hi all,
Would you rather make a career at a quant trading shop like Optiver/Jane Street/HRT, or a career in distressed private credit/equity at a place like Apollo Hybrid Value/Bain Capital Credit/BX Tac Opps? I have a bit of a unique background where I have had a little exposure (internships) to both. I really enjoyed both experiences.
I am an incoming trader at one of the shops mentioned, but I’m having second thoughts about whether I picked the right place. I know there is flexibility in a career, especially if I went to business school to “reset,” but I wanted to see what people thought about the pros and cons of making careers in these two different paths? I’ll be honest, a big part of my motivation to start in quant was because of the very high starting salary, but I don’t know how things scale throughout a career at either types of places. Would a career in quant or private distressed be more lucrative? Other pros/cons?
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Trading is better if you’re good. And if you’re not good you can still pivot anyway—the option for MBA does not go away, but QT roles seem much much harder to get after an initial path towards traditional finance. I’d say go for the QT, see if you can be successful (in which case you’ll be making 2-3x what someone at those latter companies is making 3-4 years out). It also depends whether you like it or not to begin with, but in terms of almost everything (wlb, comp, -connections), QT is prob the better right out of UG.
How about things further along in a career? Once carry kicks in as a VP/Principle in private credit/equity (~6-8 YOE out of undergrad), would you still be making more in QT, or do things even out? I would imagine you’d still be working fewer hours in QT.
You will make more in quant trading and have a better lifestyle based on the experiences of peers that are 5-7 years out of undergrad in each (I'm in a megafund public/private credit role). You don't have carried interest in a specific deals in QT but there is a lot of direct upside to comp linked to profits, especially at smaller firms. Private credit VP carry isn't huge (founders of these firms retain most / what the VPs get is very backend weighted). Also, consider that the much higher initial comp in QT will enable you to save more, invest that, and have a much larger portfolio by your late 20s. Fewer people have the necessary skills and mind to do the QT role (I know I don't haha), so take advantage of your gifts!
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Bump for other insights, trying to make decision soon
Bump on this. I feel like comp has got to be higher at the VP/Principal level for MF distressed, right? That level (8 years out of undergrad) is making 700k-1 million a year, are traders making that much at that point?
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