Is It Too Late for Senior Associates / Junior VPs to Go Buy-Side?
Now bear in mind I’m not talking about KKR/Blackstone or Blackrock/PIMCO. I love my current job in IB, but at some point in the next 2 - 3 years I do think it would be cool to work for a smaller / MM PE fund or AM/mutual fund firm that specializes in debt investments. My question is for these types of companies specializing in LMM buyouts, or $10-$50mm equity or debt security investments, are they open to taking Senior Associate or Junior VP bankers?
Not to say it's impossible, but it seems very hard. As you probably know, PE is traditionally entered into at the IB analyst/junior associate level or at the partner level. The issue with mid-level employees is that while you can be a banking rockstar, PE requires you to flex different skills not only on the transaction side (i.e. being buyer / seller vs. advisor) but also portfolio management, which bankers arguably have zero experience with. I'm not going to say that these skills are rocket science, but it takes some reps. I'm at a LMM buyout fund and don't think we would consider a banking VP for any role - too senior for associate work and not enough PE reps for VP role. Plus, there are a lot of people who had pre-MBA PE experience coming out of top b schools every year that are fighting for a small number of seats. On paper, those are naturally less risky bets.
As you note, you'll likely have better luck in LMM firms who are generally less structured in terms of recruiting and hierarchy.
Preciate the response. I think where I feel optimistic is that if I did make the jump I’d be looking for a smaller shop with a good work/life balance and fun team culture versus a super high intensity group, by design. My gut tells me a direct lending role might be easier than a buyout shop for the reason you mention - less PM work involved if you’re just a debt originations guy for a smaller LifeCo or something I would assume.
hope you have a levfin background then for DL. how many folks from coverage make it to private credit in your experience?
None. Guess my understanding of DL was a bit off - I was referring more to a role at a LifeCo type of institution that buys senior/subordinate notes from issuers. My group does a lot of sub-debt and senior notes so I feel like this wouldn't be that crazy of a switch, no?
It's very difficult from experience. Need to find the opportunities / get foot in the door which is the hardest part.
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