What are some exit opportunities from Asset Based Lending?

I've been an analyst in an ABL group at a top BB for a couple of years now.

I've had pretty solid deal experience on both the credit risk and new business sides, I've built out financial projections for M&A transactions that were partially financed using a revolver or term loan, modeled downside cases, prepared pitchbooks for new ABL opportunities, etc. About 85% of the clients I work with fall into the $500MM to $3B revenue range and the other 15% are in the IB. Typically in the Retail and Energy space.

While I've learned a lot, I don't see myself being a lifer in this kind of role. A few analysts from my bank have gone industry, moved to other banks and a handful have gone on to PE at tiny shops. What are the exit opps from what you guys have seen?

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Comments (12)

Mar 30, 2017 - 12:33pm

Like you said, other banks and maybe MM PE are the obvious ones. maybe corporate banking. maybe corp finance if you emphasize your modeling experience then it shouldn't be too hard.

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Mar 31, 2017 - 11:19am
td12:

Like you said, other banks and maybe MM PE are the obvious ones. maybe corporate banking. maybe corp finance if you emphasize your modeling experience then it shouldn't be too hard.

Thanks. I feel like corporate Banking is a fairly easy jump, I would think MM PE is definitely more difficult.

Apr 3, 2017 - 7:15pm
td12:

Like you said, other banks and maybe MM PE are the obvious ones. maybe corporate banking. maybe corp finance if you emphasize your modeling experience then it shouldn't be too hard.

Listen to this man.

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Best Response
Apr 5, 2017 - 8:07am

Plenty of moves you can make within the BB - capital markets, IBD coverage, Lev fin, syndicated finance, corporate banking coverage, other non-ABL credit group (cash flow lending). Just need to network around, these types of moves are very common. Depending on the group you might need to come in as a 3rd year analyst rather than an Associate.

Can work in lending for a BDC, finco, or insurance company.

corporate finance in industry

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Apr 5, 2017 - 8:09am

Asset Based Lending: Exit Opportunities (Originally Posted: 10/05/2016)

Hi.

I have just received an offer to work for a firm in their Financial Due Diligence team for Asset Based Lending. Any info on what typical exit opportunities would be? What the career growth is like?

Apr 5, 2017 - 8:11am

I'm in Asset Based Lending. What are some exit opps from here? (Originally Posted: 08/29/2016)

I am a 3rd year analyst in an ABL group at a BB. As I head into my third-year, I am wondering what my exit opps would be. I've asked other people in the industry what some exit opps will be, and it seems like most people stay in credit or either go to the relationship management side, which I do not want to do.

What corporate roles would ABL/credit skills be most transferable to?

Thanks.

Apr 5, 2017 - 8:12am

First thing that came to my mind was 'go to Chicago' and try to interview with some of the smaller shops there. In my experience, the big & MM PE guys use a ton of ABLs in their deals (cheap financing, way to stretch the senior and overall debtload, etc.). I think guys like you might be able to spin your way into a junior role of some sort - at a minimum I think they would be interested in your debt and capital structure perspectives. I'd brush up on the equity and M&A side of things though. You won't be expected to be an expert there but will need to have a good solid foundation (something I admit I neglected all throughout my career in Lev Fi).

But I'm not in PE and know that the overall market is very, very competitive, even for smaller MM shops, and you typically have to take a step down to start.

Apr 5, 2017 - 8:13am

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