Hey everyone,
So my long-term goal is a PM at a large MM (P72, Millennium, Surveyor Capital, BAM, etc.) for discretionary L/S. As of now, I have two FT offers, Private Debt at a large firm (20b+ in AUM) and a Prop Trading firm (will be given a $2m book to start and there is no capital contribution). Which would be better/easier to make the leap to MM?
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Private debt.
Stronger resume value. Since you'll be coming into MM at junior level in any case that matters more than actual experience.
Not a lot of well-regarded prop shops around.
Really? The models in Private Debt aren't that complex. Also, would it even be possible to make the jump from MM Private Debt to MM Hedge fund without prestige? (School, BB internships, etc.)
Private debt will be better for building a long-term foundation in understanding how to think about a business from an investment perspective and effectively articulating a thesis. Models are never the hard part; the hard part is being able to break down a large, complex business into a few fundamental drivers that move the needle from a earnings standpoint. Prop trading would be good if you wanted to be a trader at a MM, but my gut feeling is you're trying to be analyst. Just my $0.02 having worked in the space.
I dont know of a single MM PM that does private debt. Bear in mind MM HFs tend to be market neutral, and i'm bot sure how you'd go about pairing or hedging your private debt holdings.
Prop trading is probably a little more relevant, but at the same time i dont know a single MM PM that came straight from a prop trading role.
So neither role seems like a great fit unfortunately.
Private debt if you had to choose.
You should never, ever, take the second offer, it's just too small.
I would think being involved in the markets would be more appealing for large hedge funds, no? A couple of my buddies did private debt and they said the models are usually just plug and play. Also, given how inflated the leveraged loan market has gotten, private debt completely depends on which firm you work for.
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