Am I thinking about my next move incorrectly?
I've spent the last ~3 years at a bank across originations and asset management but solely AM for the past ~15 months. This experience has provided me with skills in workouts and restructuring.
I'm seeking a more opportunistic credit role and am interviewing with several debt funds. While I'm receiving positive feedback and progressing through the interview processes quickly, I'm not entirely enthusiastic about these roles as I ultimately aspire to return to originations. Here is where it gets tricky, I could receive 3 offers within the next 10 days (2 are very brand name, and 1 is more niche and may pull myself out of that process) and am starting to get cold feet.
I am thinking (could be totally wrong) that transitioning to a debt fund for AM will offer me exposure to a wider range of assets and situations beyond the typical bank lending scenarios. This experience will enhance my skillset and broaden my overall knowledge, enabling me to return to originations or potentially even a transition into the equity side (not sure if that interests me given I like volume).
I'm a quick learner with strong modeling skills and am fine working a ton to get up to speed, so I think I could be successful going straight to originations but I am not seeing a ton of opportunities. I also have not closed a loan in ~20 months, so the process of getting all the legal docs/thirds/etc is not super fresh. Overall, I'm growing impatient in my current role and want to move to something new. I am also not really looking to go to another bank to do originations there.
TLDR - Would jumping to AM at a debt fund for a year or so be worth it to move to originations, or could that lead to an unnecessary hop on my resume and potentially less career progression in the short term.
Thanks!
What do you like and dislike about the originations vs. AM?
As an associate it really shouldn’t matter, but once you get to a VP, it will be more difficult (not impossible) to transition back and forth.
The real issue is that generally people look for long term AM people. So if you go into a job with the intention of leaving in 2 years for originations and someone picks up on that (which is typically very easy for seasoned teams), your chances of getting the job is lower. Generally, people don’t want to be your second choice, train you, and then you just go off to do something else in a couple of years, restarting the cycle.
On the origination side, I liked seeing a lot of deals and working through their issues to get them to pencil. I also really liked the pace and how it is more of a "team" as opposed to AM, which is a 2 personal job (1 doing analysis and 1 signing off). I did not like the unrealistic expectations sometimes. Hours can be bad, but I never minded the late nights / early mornings.
On the AM side, it is rewarding to complete a workout on a positive note and to see assets grow over time. It sometimes becomes a "going through the motions" exercise when the loans are performing well. Hours can be bad and never-ending, depending on the status of the portfolio. I also hate when a poorly structured loan comes through.
And the two roles you are interviewing for are straight AM, but where you currently are it is both (albeit AM for now while some stuff is worked though in the portfolio)?
Do you have any timing on when you could transition back to originations at the bank?
Honestly you don’t sound very enthused about AM, even at the debt funds. To me, doesn’t make sense to move to something that you don’t want to something that you don’t want, but people do it all the time.
Based on the most helpful WSO content, your situation reflects a common dilemma for professionals navigating between asset management (AM) and originations. Here are some key insights to consider:
Transitioning to AM at a Debt Fund: Moving to AM at a debt fund could indeed provide exposure to a broader range of assets and situations, as you mentioned. This experience can enhance your skillset, particularly in workouts, restructuring, and understanding complex credit scenarios. However, it’s worth noting that AM roles, while stable, may not directly align with your long-term aspiration to return to originations. If your ultimate goal is originations, this move could be seen as a detour rather than a direct path.
Resume Considerations: A short stint in AM at a debt fund might raise questions about your career trajectory, especially if it’s perceived as a lateral move or a temporary stopgap. However, if you can clearly articulate the value of this experience (e.g., exposure to diverse credit situations, enhanced analytical skills), it could still be a net positive for your resume.
Returning to Originations: The challenge here is your lack of recent deal-closing experience. While your modeling skills and willingness to work hard are assets, the gap in closing loans could make it harder to transition directly back to originations. That said, if you’re confident in your ability to quickly get up to speed, you might consider targeting roles that allow you to re-enter originations directly, even if they’re not at the most prestigious firms.
Long-Term Career Progression: If you’re considering AM at a debt fund as a stepping stone, ensure that the role offers tangible opportunities to build skills and relationships that will facilitate your return to originations. Alternatively, you might explore hybrid roles that combine elements of AM and originations, which could provide a smoother transition.
Patience vs. Impatience: It’s clear you’re eager to make a move, but it’s important to weigh the long-term implications of your decision. Jumping into a role that doesn’t align with your ultimate goals could lead to frustration down the line. If originations is your endgame, consider whether waiting for the right opportunity or networking more aggressively in that space might be a better strategy.
In summary, while AM at a debt fund could broaden your skillset, it might not be the most direct path to your goal of returning to originations. If you do decide to make this move, ensure it’s with a clear plan to leverage the experience for your next step. Otherwise, consider doubling down on your efforts to find an originations role that aligns with your aspirations, even if it means being patient for a bit longer.
Sources: Moving from Asset Management into IB / PE, https://www.wallstreetoasis.com/forum/asset-management/will-asset-management-industry-just-wither-away?customgpt=1, Career advice needed: Acquisitions vs Asset Management, Fork in the road: Career path in Asset Management, Transitioning from High-Yield/Performing Credit to Distressed HF
Just so I understand, is the AM role you are going for in debt funds with a hung book of bad loans or is it performing loans? Doing distressed debt workouts and restructuring is extremely valuable to transition into origination or progress further in the distressed debt world. However, if it is purely performing loans then you'll need to figure out a way to lateral into the origination team which could be challenging. A little more info would be appreciated.
1 of the shops is very aggressive and buys loans amongst originating their own loans. The other only originates loans but has performing and non-performing loans that I would manage.
Hmmm... honestly I would wait out for either an origination job or a pure distressed debt restructuring job. The reason is not that it is impossible to shift from AM to origination, absolutely not, but if you do not want to do the job then you will never outperform expectations enough to warrant a lateral shift within the firm.
You are at a bank...your modeling skills can't be that good.
I totally get what you are saying; there are people I work with that hard code after 10+ YOE. I have had success in all of my modeling tests thus far for multiple companies, so I am using that as my data.
It sounds like you’re at a crossroads between taking a solid step forward in AM at a debt fund or holding out for an originations role that aligns with your long-term goals. If originations is where you ultimately want to be, the risk with moving deeper into AM is that it could make it harder to pivot back later—especially if you spend more than a year there.
That said, if the debt fund role gives you exposure to a broader range of deals and more structuring experience, it could make you a stronger candidate for originations down the line. The key is making sure you don’t get pigeonholed into pure AM without a clear exit back to the front-end.
If you’re not seeing many originations opportunities now and feel stuck at your current bank, a move to a strong debt fund could still be a solid play—especially if it’s a top-tier name that gives you credibility and network expansion. But if you know 100% that originations is the goal, it may be worth waiting a bit longer or actively networking to find the right opening instead of making a move just for the sake of change.
Does doing debt AM at a mega fund change the geometry? Having a huge name on resume should be helpful down the road.
Yeah, working at a mega fund in debt AM definitely helps with your resume and opens doors. The exposure to big deals and top-tier professionals can fast-track your career. Just make sure the role aligns with your goals, not just the name.
The jump to AM from AM won’t help you, regardless if it’s at a debt fund or not. Sounds like you’ve gotten great experience in debt AM over the past 15mo. IMO the past 2 years have been a great time to be in debt AM, folks w/ workout experience and more generally being part of the conversations re: troubled loans is invaluable experience that most don’t have.
Sounds like if things pick up you could get pulled in to help on originations at the current gig, but no chance of that happening if you move. I would consider staying as expectation is that activity should pick up later this year which could work to your benefit.
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