KKR RE Credit vs RE Equity
How do the two compare in terms of hours and comp trajectory? Which is stronger relative to outside competition? Credit seems to be the more attractive vehicle, safer and even yielding higher returns, but would like to hear outside opinions.
Depends on the firm you are comparing to and your career aspirations.
What do you want to do and what are your other choices?
KKR Credit is a good, well known shop. Heard hours can be a bit long, but as an analyst you have a good name behind you and resources to train and learn. Is that appealing to you? If not, then pass.
Thanks for the response! I wanted to draw a comparison to other top MF's like BX/APO. I know a few senior members from BX/APO that have left their respective funds to join KKR, so it seems like they are in an exciting growth phase, at least on the credit side.
I'm not sure what I would want to do after, what would be the best exit ops for both sides?
Apologies for the jumbled thoughts, but hope this makes sense, thank you!
I'm curious, how did you land an offer at KKR from engineering? Are you coming out of undergrad, or lateralling in from work in engineering?
With all of the "top" firms you are pretty much just splitting hairs. They are all very institutional and have good basic training for their analysts.
The question about money really shouldn't be an issue either. Analyst/associate base salary is pretty standard across most platforms and in the end top credit guys make similar money to top equity guys.
Honestly, the decision should come down to which team you click with more (being a BX analyst, but hating your MD/team would be miserable), and which area you think you would enjoy more (credit or equity). You shouldn't have issues with exiting from any of those firms and should be fine to switch between credit and equity through your analyst/associate years.
The question of IB or PE/Private Credit is a buy side or sell side question. Which do you think you would prefer and want to be long term?
KKR NYC is SUPER sweaty. I know more than one person who hated and exited after one year.
Thanks for the input! Do you know what hours looked like, and what type of roles did they exit into? I know it's pretty intense (as with most MFs) but were they not also comp'd accordingly?
80+ hours constantly even if deal flow is normal
Shit seniors who yell and other childish behaviour
One exited to a LifeCo. That should tell you something
I work in a group that does RE credit and RE equity. Find the credit side mind numbingly boring as you are essentially only focused on downside and ability to recover whatever your LTV is. Argument to be made that the equity side is slower at the moment, but I wouldnt let that alone deter you.
Comes down to personal preference, I personally find credit and structuring risk to be my bread and butter, but I'm also a pessimist and tend to be a defensive investor. As above noted, would also consider at some of these acquired valuations equity funds probably will see limited upside, but that's not to say it will stay that way forever. If you manage to get an offer, spend your early years exploring what aligns better with your interests...you'll be paid more than enough on both sides and trajectory has no real difference at megafunds. KKR's real estate division is much much newer relative to BX/APO, so it's not stronger if that's who you are comparing to. But, it has continued scaling successfully since its official formation, and I can see more upside here especially at the junior level than at both BX/APO. More exciting for sure, in my opinion.
bump — any updated thoughts, and on internal mobility from equity to credit and vice versa as an analyst?
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