Hi Chaps,
I'm currently staring down the barrel of an opportunity to switch to the buy-side from a sell side HY / DD desk, but it's to a fund which definitely isn't a top pick for distressed and is much more HY focused (distressed is where i want to focus).
Is there an argument to just get on the buyside, then make a move from there to a shop with a better fit, or to wait it out on the sell-side? Will it become increasingly more difficult to make the move to the buyside if i pass it up? As in i'll be a VP with no distressed buyside experience, seems like a hard sell vs. generic buyside VP or more jnr RXing / M&A dude?
Thanks for any input
Hmm hard to say from limited experience but from whatever relevant knowledge I have, it depends on the situation. I know a guy who did some tier 2 (or even3) similar-to-buy-side gig and then landed a job at one of the best HF's. But pre tier 2/3 gig he started his career at one of the best sell-side prop desks. In a few years he was at, again, one of the best US HF's out there where his desk was shut down in 4 years (which then led to tier 2/3 role). It all depends. Point is, having a solid few years on resume with best firm in your class helps if one of your roles don't do so well.
From what I've gathered so far you are on a solid desk with decent HY and DD exp. What you need to know is, if the role being offered is one of the best in class for HY. If yes, then a switch may look resonable because in a few years you will still look attractive to HY and DD funds out there that will recognise your team, their track record and the solid buy-side HY experience. Solid and deep DD may be difficult though if that makes sense but you can always market yourself given current DD experience.
Since I've been on the buy-side I can say that choose your fund very carefully. Too many blow up. Also, you may be better off signing with a team that has existed for a fairly decent amount of time (PM with at least 10 years). Since you know the HY/DD crowd Im sure you are are aware of funds that started only 4-5 years ago but made it big. This may not repeat so be careful. It's hard to switch from a not-so-great HF with below average HF to a better HF that's doing well.
Waiting for too long on sell-side may make it difficult to switch to the buy-side. In the sense that you may be eligible for lesser roles being offered.. There will always be younger folks with 2-4 years exp willing to start as analysts or associate level. It may still work if you compromise (money, designation....)
You are a research guy I think so Im sure there are theories and exceptions all the time so make your best choice. Think - startup HF with solid managers looking for a relatively more mature analyst (and not 2-3 years exp) join their team as a partner.....happens. Or a new fund within an established firm looking to hire more experienced folks....happens as well. Also think out of radar funds that are actually doing well and are ignored by the street.....happens. You just have to network well and tell them you know just how amazing but underated they are.
May I ask, why are you more inclined to DD than HY?
Good luck!
Cheers man. I just love RXings, people get angry, there's more strategy involved, if you're right your often proved right (ie, less at the whim of the market), there's just nothing ballsier than someone going big in distressed for control, and 5-10% yields do not excite me.
Ok cool. I personally like to stick to a desk within the same firm as it helps me add real value. I believe unless you are a one man show doing prop at BH or millennium, you will need a good few years to prove your worth - i.e. not only provide good analysis but be the guy who the management can trust to take on more responsibility and on track to be MD and/or partner.
If you're so passionate about RX just stay where you are now and keep looking for your perfect spot. I got my current gig through a contact of mine. But I know him past 2 years and have met only 3-4 times. Nonetheless it was good enough for him to offer me to an informal interview with his good friend who happened to be a top guy I always wanted to meet. I didn't even have to ask.....So if you are willing to network well, cultivate people and develop that relationship it can work. Last thing you want to do is join a firm doing HY only knowing that you wanna move to RX at some point. You know it all, if you were a fresh guy I would have said consider HY seriously as you never know you might just love it. But in your case you know exactly what it is I'm assuming. Will be awesome for you to get the role of your choice so go guns blazing, firing with both hands my friend!
Anyway enough lecture from my side, good luck!
We generally view people on this kind of desk well. If you are with a good team it shouldn't be a problem waiting. One of my boss' previous firms hired some people with what seems to be the same background from Goldman.
I think this plays into WSO's issue of not really knowing alternate paths besides IB->PE/HF. Hard to track all the one-off research and desk guys who make the buy-side jump...
Do you publish at all Oreos? Also, not to hijack, but are desk-type roles looked upon more favorably than publishing-heavy research positions?
Desk > Publishing
Would wait. I am finding it very hard to move from a small no-name fund to the big leagues (part of the problem is my weak academic background and the fact that there are very few funds that do distressed in my geography).
Dont let the recruiters stuff you into a shit role.
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