Evaluating Two Different Options

How do you folks think about Bain Capital Credit (Sankaty) vs Top Restructuring Groups (PJT/Laz)? I'm asking to contribute to a discussion between some people I know.

Here's some more context:

Quality of Work: Bain wins out due to being more interesting (investing vs banking), with the opportunity to end up in the Distressed and Special Sits team (which is effectively an exit from Top RX).
Location: Top RX wins out due to being in NYC (major plus).
Culture: Let's say Bain has a better one.

With that context in mind, it would be helpful to consider prestige/exit opportunities, and it would be great to hear people's thoughts. I know there was a thread last year comparing PJT RSSG vs Bain PE. For the record, I think it's absolutely ludicrous that that person chose PJT over Bain PE. So, in the context of thinking that Bain PE>PJT RSSG, how would you think of Sankaty vs Top RX, especially in light of the above factors?

 
 

Are you asking for recruiting next year?

If you think you will get a return offer for Sankaty and are genuinely interested in distressed debt investing, then go for it. You should be able to lateral from there to another distressed debt fund probably, but do note you might not be able to go into PE.

 

I would absolutely go do 2-3 years in restructuring, especially if it's company side advisory / a top firm. You will learn a ton, make great $, and if you pursue a credit investing job you'll draw on the rx experience and relationships your entire career. If you were signing up for 5 or 10 years in banking, that would be one thing, but we're talking about TWO.

 
FellowTraveler:
I would absolutely go do 2-3 years in restructuring, especially if it's company side advisory / a top firm. You will learn a ton, make great $, and if you pursue a credit investing job you'll draw on the rx experience and relationships your entire career. If you were signing up for 5 or 10 years in banking, that would be one thing, but we're talking about TWO.

Curious to hear why you would say that. Many people I know at distressed funds actually did not come from a restructuring background. In fact, from what I know, funds want people who can think like investors more so than those who have the restructuring banking skillset, as that is teachable. I can't really speak to the relationship aspect of your comment, but would love to hear why that is such an important advantage.

 

You said you read the PJT Bain PE thread. A lot of insightful comments there, especially one by APAE . You also said you found the decision to be ridiculous. Why don't you tell us your reasoning against those arguments so we know what you're looking for? Would be helpful because now, I can only tell that you definitely think Bain PE > Bain Capital Credit, but if you want to go to traditional PE, PJT would be better than going to a credit fund. Contradictory.

 
Best Response
MrK25:
You said you read the PJT Bain PE thread. A lot of insightful comments there, especially one by @APAE . You also said you found the decision to be ridiculous. Why don't you tell us your reasoning against those arguments so we know what you're looking for? Would be helpful because now, I can only tell that you definitely think Bain PE > Bain Capital Credit, but if you want to go to traditional PE, PJT would be better than going to a credit fund. Contradictory.

Regarding the Bain PE thread, in my personal opinion, taking a banking gig over an investing gig (given that they are both top shops), when you want to be an investor long-term doesn't make sense.
I get that a top RX banking program gives you more optionality in buyside recruiting, especially in the PE context. What about for value/distressed HFs?

 

Same reason applies. This is an investing vs banking role. Take the investing option. You will get that experience straight away. I can't imagine transferring to PE or HF after a distressed credit role is that difficult, given you're very junior.

Having options is usually the reason to go to IBD, as there is already a structured process in place to transition out of these places. If you feel strongly towards investing, you can make it work coming from a credit fund.

 

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