What's the board's opinion on how hard it would be to move from a credit hedge fund to a private equity firm? For example, could someone from Sankaty or KKR's credit funds move to a PE shop, etc?
I'm working in high-yield credit now and we do a lot of the same types of LBO analysis and capital structure modelling that I assume PE firms do, though obviously the deal-sourcing aspect is very different.
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would love to know this, been enlightened since Kenny?
Kenny_Powers_CFA
Any insights you have gained since then? I'd love to hear more about it!
It is doable but obviously atypical. Largely driven by your personal network, and a stint in banking before the buy-side credit role seems to be a plus. I have seen two people do it.
One was at a leading BB (GS/MS), then Fortress for four years (didn't want the MBA). Grew tired of the sourcing aspect (as your post seems to hint toward) and wanted a more deal-oriented experience. Also grew weary of Fortress' underperformance in recent years and was concerned about long-term progression there. Someone who'd been an analyst in his banking group while he interned was in a post-MBA role around the corner at TPG SF. He moved over easily, seemed like a right guy/right time/right place situation.
The other spent three years in banking at GS, rotated internally, and was three months into a role on a prop desk in GS Opportunity Partners. Didn't like it at all. Through a family connection was able to recruit with an upper middle market PE fund and come in nine months later alongside their new associate class that was recruited the prior year. The only drag was finishing out the year on the credit desk, but small price to pay to get where you want to be that quickly from a nontraditional path.
From this, my read is that trying it post-MBA would be far harder (fewer post-MBA seats in PE relative to incoming b-school students with PE experience), that who you know matters (what else is new), and it's all about timing.
Interesting, APAE, how about if you start your career at a top credit fund (i.e. straight out of grad)? After a few years, would you get the same looks as the banking analysts?
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