Does it make sense to try and lateral from a BDC to a LBO Fund or larger BDC after a year?
I was hoping to get someone/the community's thoughts on my current predicament. I am a PE/investment associate (career track) working at a BDC underwriting both minority and majority equity investments sourced through traditional auction processes. We are the sole sponsor partnering with the management team (not supporting another sponsor) and outside of new deal execution, my job on the portco monitoring side is for the most part to execute (diligence, valuation, & documentation) on add-ons for our portfolio companies which are all typically very aggressive on the consolidation front. I am close to a year in but was originally deep in the recruiting process with shops until COVID happened, fortunately this job came around.
I am wondering if this dynamic (working for a BDC, not doing buyout transactions, working on minority deals) will make it tough to lateral to a more traditional buyout firm in the future at a higher role (sr associate/VP) and if so, if it would make sense/is feasible to lateral to a buyout shop after a year or so is up to start getting the "right" experience rather than stay and recruit after 2/3 years. Or if it would be materially easier to lateral now to a larger BDC than it would at the 2/3 year mark at a higher position.
In IB, if you don't get the IB gig you wanted specifically, lateraling in your 1st year was pretty straightforward and intuitive with plenty of spots open due to attrition and so it made a lot of sense to lateral after a year or so at a smaller shop, but I'm not sure what the dynamic is on the buy-side. If lateraling after 2/3 years is not materially tougher or simpler, I would prefer to stay put for now.
Appreciate any and all thoughts.