Debt fund WLB

I am currently working in non-bank agency lending, and I’m wondering if the hours at a debt fund would be significantly worse? I currently work probably 40-50 hours on an average week, but that’s definitely in waves of super busy weeks and super slow weeks. I’m mostly interested in distressed credit originations.

6 Comments
 

Based on the most helpful WSO content, hours at a debt fund can vary depending on the type of shop and the deals being worked on. Here's a breakdown:

  1. General Hours at Debt Funds:

    • Average hours typically range from 50-60 hours per week, with occasional spikes to 70-80 hours during deal closings or busy periods.
    • For example, in direct lending, hours can normalize to 50-60 hours once you're experienced, with rare weekend work unless there's a tight deadline for investment committee approvals.
  2. Distressed Credit Originations:

    • If you're focusing on distressed credit, the hours might align more with the higher end of the spectrum, especially during active deal cycles or when conducting deep diligence on complex credits.
    • Some credit funds report cycles of intense work (e.g., back-to-back weeks of heavy activity) followed by easier periods when there are fewer active engagements.
  3. Comparison to Your Current Role:

    • Your current 40-50 hours per week with waves of busy and slow weeks is on the lighter side compared to most debt funds. Moving to a debt fund, especially in distressed credit, would likely mean an increase in hours, particularly during peak deal activity.

If you're comfortable with occasional longer hours and enjoy the challenge of distressed credit originations, it could be a rewarding transition. However, be prepared for a more demanding schedule compared to your current role.

Sources: The Hours, Golub Capital type direct lending fund, 2017 Hedge Fund Report: 8 Key Takeaways, Debt Funds in Chicago, Q&A: Non-Bank Commercial Lending

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

I worked mostly 8 to 5 most of the time as an underwriter. Once in a while, I work a bit on Sunday evening. When I was an underwriter, I had worked less than when I was an originator. So call it 45 hours.

When I transitioned to originator, due to market coverage and travel, I worked a lot longer. When I didnt travel, I work 8 to 6, usually have a dinner for work or just personal and almost always needed to connect again from 9 to 11 to catch up on emails or finsh up something that I was working on. Except Friday, I wrapped things up by 4-5 pm. I worked the majority of Sunday just to organize and prepare for the upcoming week, call it 5-6 hours on Sunday. When I traveled, I started the day at 8 and finished at midnight because of all the meals, coffee, drinks on top of trying to work in the evening. I traveled every 3-4 weeks for 2-4 days each trip. So roughly 55-65 hours when I didn't travel and 70-80 hours when I traveled. 

Now I am still originating but also involved in fundraising and investor meetings.  I travel every 2 weeks except from mid June to mid of September. Same schedule as above and I work every Sunday for the same 5-6 hours. I am done by 2-3 pm on Friday now though. I probably average 60-70 hours a week still. 

More hours overall now, however, since I have a junior originator on every deal now, it feels less stressful to respond to everything on time and read every single thing. I am still very involved in origination. However, if I travel and I get a lawyer's comment on stuff late Thursday night, I won't need to sweat it and have the junior originator deal with it. I go to bed and off to the airport on Friday morning and monitor my phone/laptop and just go home to start the weekend.

Next level is running the team which will be little to none origination and just fundraising, investor meetings, and managing the team, guesstimate is same 60ish hours. 

TLDR: 45 hours -> ~60 hours hours -> 60+ hours. Overall, hours are still long but less of the hectic last minutes stressful stuff and more time on the plane and travel. I don't have kid so it works fine right now but will need to find a way to adjust soon. 

 

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