Distressed NPL analyst: interesting or boring?
After over 2 years of TMT M&A for a BB IB (which I did not enjoy very much), I have been trying to get a position within an HF. Distressed debt was one of the options, hence I am now considering a role within an HF (c.$10bn AUM) which focuses mostly on distressed credit.
However, the position is within the non-performing loan (NPL) portfolios team, which focuses on SME and consumer debt (transitional and stabilised RE, unsecured loans, etc.).
I like the role, but I am not fully convinced; it is obviously something very different from what I have been doing so far, and I would like to have a more comprehensive view on the position in order to take an informed decision...
Hence, I would have a few questions; any help would be highly appreciated:
- Is NPL a relatively low risk/return business within the HF industry (compared to corporate distressed debt for example)? Any view of what a good (post fees) IRR should look like?
- Are fees significantly different from the "classic" 20/80?
- Should I not like it, what are the potential exit options? RE PE funds? Would it be hard to move to corporate distressed debt?
- What are the hours like (very approx.)?
- What could I expect as salary (possibly both fix and variable) with my experience?
Thanks in advance.