Credit vs REPE
Can someone please explain the difference in what you would be doing as an analyst at a credit shop that is investing across mezz and preferred equity vs an analyst in an Acquisitions role at REPE fund? What does a day in the life look like at each?
Bump
I'm an analyst at a shop that does both. Your day to day is pretty much the same. At its core, the job is underwriting at the junior level. For both you'll underwrite the deal as if you were to buy it. Mezz and pref equity just layer on a little bit more analysis regarding your tranche of the loan. The due diligence and closing process will of course be different between the two. Also the credit side can originate a deal much sooner. Ive seen credit deals close in weeks whereas equity deals take months between bids, memos, diligence, and negotiations.
Right now, the debt side is seeing much more deal flow as many owners are in distressed. We will likely see a wave soon. A loan is typically ~5 years and many were given during covid in a low rate environment. That means equity owners need to figure out a way to repay their current loans soon and mezz lenders will continue to have the opportunity to change 10%+.
Every day, I see more reasons to drop my plans to switch to private equity and go into credit instead
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