Doc negotiations analysts/associates?
How involved are you guys (analysts/associates) in term sheet/JV/loan doc negotiations? Are you heading any directly, supporting seniors, or entirely uninvolved?
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Supporting seniors. Basically modeling the term sheets & reading loan docs, informing them of impacts of changes.
Our internal counsel has gone to part time so I've been given a crash course in CA review and am expected to take first cut at redlining them. Helpful experience.
It depends on the firm. My first firm I just modeled the term sheet. Second firm had zero involvement. Third firm, I’m a bit higher up the ladder now, but due to the lean team I’m heavily involved in docs. I now not only run the financial analysis, but am also expected to heavily contribute on doc negotiation.
At analyst level unless its a very lean shop, expect to not be involved at all beyond plugging terms into a model.
At associate you typically start to get involved in this through doc review/redlining and drafting for LOIs, CAs and similar simpler items. Still very rare you'll actually get to sit in on negotiations at junior levels though, aside from conference calls with partners reviewing and editing docs.
Worked in both equity and debt and have had zero involvement thus far
Analyst / early associate supporting seniors - mostly modelling related work for JV docs / loan docs and working through first draft wording with lawyers. Towards later stages of being an associate handled negotiations of documents - loan docs, JV agreements, SPAs etc with senior support.
Thanks, yeah I’m an analyst with about 2 years experience get good exposure and am encouraged to contribute on term sheets, JVs, loans docs. Definitely find it helpful to understand the full context of the deal and imagine it will be helpful later on in my career.
Associate at big dev shop...lean team so heavily involved in doc negotiations. When push comes to shove, leadership is making the business decisions, but I'm given the opportunity to give input. Great way to learn, especially if you've got VPs/MDs who trust you.
If you're not afforded those opportunities, ASK QUESTIONS. Read the docs and mark em up. A lot of times you get stuck on terms and inputs for your models. Read the mind-numbing stuff and you'll be thanking yourself in a couple years.
I personally find full credit docs easier than term sheets (weird, right?) because it's pretty hard to strike the right balance between an open ended but not too Sponsor friendly term sheet which 1) you hope to get good traction and alignment across the lender club (nowadays there is zero interaction until CP satisfaction and quantum allocations basically…) and 2) gives you a lot of flexibility to stretch the doc to fit hairy DD topics… Still, there is somewhat limited external training for this, so it is really experience-based and YMMV. All of this is in the context of project finance mainly but I have recently gained more leveraged experience, since deals are going hybrid / cross-overy.
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