I saw in an earlier post ("Is Apollo that bad") and it brought back some memories. I was just going to respond in that thread but my post ended up being much longer than I had expected so I decided to start a new thread, and maybe address some questions you may have regarding LevFin deal dynamics. I worked in LevFin at a BB and I can confirm that Apollo is one of the toughest clients to handle - both from a junior standpoint as well as from a senior standpoint (basically at the MD-level). I unfortunately had the pleasure of working
09 Jun 2020
About I have been a longtime WSO reader (6-7 years) and some years down the track, I thought it would be helpful to do a quick Q&A I think this could be helpful in particular for (i) those looking to switch over from credit to equity investing, (ii) those interested in mezzanine / sub debt, and (iii) those interested in operationally focused / distressed PE Background - c2 years Bulge Bracket LevFin (ANL) - c2 years mezzanine / sub credit investing (ANL / ASO) - c2 years opportunistic / loan-to-own PE, mid-large cap, (ASO / VP)
18 Oct 2019
Former Leveraged Finance / DCM Analyst -> Associate at a BB, left before COVID (thank goodness or else I then would literally have no soul). Here to help those that are looking to get some inside detail in the job role, what you actually learn, and what you need to know during interviews. Really glad I was part of a product group vs industry, as I was actually able to help finance a VERY broad group of industry agnostic deals (gaming, tech, healthcare, industrials, CPG, etc). Pretty much all except for RE. Looking to improve a self-help tutorial online that a colleague and I also created to
20 May 2020
Anyone here working at Leveraged Finance/ Acquisition Finance at a BB in London? I am really curious about how your day-to-day tasks and responsibilities look like. Several questions I have (I have many more, but can add them later or ask via pm if possible): - Do you hold a personal portfolio of companies, and if so, how many tend that to be? - How lean are your deal teams, just you as an analyst and an investment manager/deal captain? - On a new deal or for an event of an existing client, what responsibilities are you given? For example, do you run Ratings and RAROCs for fee/margin pricing
18 Jul 2020
Can any JPM employees chime in on the culture / hours at JPM LevFin? Heard from 2nd hand sources that hours are relatively chill as they don't hold pen on the model and focus mostly on just the docs negotiations / execution. Also if someone could comment on how the group is structured in terms of verticals (do you get verticalized or are you a generalist, what are the various verticals out there etc), as well as general culture of the group that would be greatly appreciated, thanks!
21 Apr 2021
I'm curious, how is the work at the junior level different in leveraged loan investing (buy side) vs levfin (sell side)? Are you still directly involved in the transaction process on the buyside? And finally, what would some exit opps be from doing lev loan investing at a relatively no name fund (<$50bn aum)? Would it be possible to lateral into a larger fund like Carlyle/Ares, or move to the private side aka direct lending?
05 Feb 2021
Great news. I finally landed a spot in DCM for the leveraged finance team of a very prestigious BB on the street. I literally started from the bottom, working my way up, and have been working at a mid-size to small boutique firm for the past year and a half. My old firm was super short on staff, so I am already use to working 100+ hour work weeks, working multiple assignments with tight deadlines. My question is what should I expect job/work wise going from a smaller shop to a top tier BB? What are some of the big differences that I should prepare myself for? I want to prepare as much as
16 May 2017
Question was posed to me earlier this week. How could an LBO happen without a bank? Could this happen through seller financing resulting in the structuring of a leveraged loan by the sponsor? How would this play out in practice?
06 Aug 2020
Hi guys, I'm really interested in Debt Capital Markets and Leveraged Finance in Canada and I was wondering if you guys could give any insight about it. How big are the teams for each, comp, exit ops, etc? I assume mostly the Big5 banks have teams in Canada, or do BBs in Canada do too? And lastly, what's recruiting like for these roles out of undergrad? Thanks!
28 Jan 2018
First-time poster here. I an Associate at a small CLO fund (~$2bln in AUM) and my job responsibilities include screening new credit investment opportunities in the primary and secondary broadly syndicated leverage loan markets (non-investment grade), as well as managing my current portfolio of credits.** My question is would a move to a direct-lending position at a private debt fund (i.e. Ares, Golub) be a feasible / strong career move? What are exit opportunities for someone in my position?** Thanks in advance.
10 Apr 2018
I have an upcoming interview for an associate position in the LevFin group at Goldman and was wondering what I should be expecting. Background on myself: Current position Sr. Investment Analyst @ a large single family office with the majority of my time focused on the private equity and credit portfolio. I have pretty broad experience across other asset class investing as our team is encouraged to be generalists and work across the different parts of the portfolio. I am 3 years out of my undergrad and a part time master's student as well (MSF). I've enjoyed the past 3 years at my firm and the
04 May 2021
Does anyone know anything about the credit investments group at Credit Suisse? Recently applied to FT after they reposted it not too long ago, but can't find the application now. Seems like a lot of the investments team is from top tier Lev Fin programs like BAML and a few lateraling within CS, a lot of Wharton grads, and growth seems to be extremely solid, but I'm finding little to nothing else on the group itself. Any insights on reputation, performance, or anything else?
05 Dec 2020
How are FCCR & DSCR calculated and what is the language usually like in a non-covlite scenario. The formulas I have seen are below. Are these correct? Also, for DSCR, how are revolver draw/(repayments), Pik non-cash interest, and optional prepayments considered in calculating the ratio. These ratios seem to be quite similar, so what is the conceptual difference between the two? FCCR: (EBITDA - CapEx - Mgmnt Fee - Taxes) / (Cash Interest Expense + Mandatory Amort) DSCR: (EBITDA - CapEx) / (Cash Interest + Mandatory Amort + Principal Repayments) I have never dealt with a FCCR/DSCR maintenance
01 Jul 2020
What are people's thoughts on the recovery path for the HY and LL markets (2021-2023). Are there still pockets of value? Keeping the question broad but would love to hear from those in the opportunistic credit space
04 Apr 2021
Hello everyone, I'm interested in the state of the High-Yield Bond Market. I know that in the 80s high-yield bonds were used to finance large LBOs and that there was a few boom and busts. Are high-yield bonds still commonly used to finance LBOs? If so, does anyone have any idea on the percentage of high-yield bonds used for LBOs vs simply for fallen-angles and other regular capital raises? Also, does anyone have any idea on banks whose Lev Fin groups work primarily on financing LBOs? My ideal job would be to work on analyzing an LBO target, pricing high-yield bonds (or syndicated loans) used
15 Feb 2018
Soooo much of my time is taken up by spreading numbers in excel, and by the time that's done i'm in a rush and can't actually take the time to analyze them. Sadly i work with mostly private financials that are given to us in PDFs... i use adobe acrobat but 99% of the time the rows/columns are completely out of wack and it takes me just as much time to reorganize it as it would if i just hardcoded the numbers. What are the alternatives to this, if any?
15 Dec 2020
Hey guys, I'm an analyst in a LevFin / Financing group (not BB) that historically sends analysts/associates to private credit given the overlap in the type of deals we work on. Most are LBO's or other M&A financings. Is there a chance to break into traditional buyout or even Growth Equity with this experience? We don't spend nearly as much time on deals as say, an M&A team that acts in a sell side advisor capacity. How can you spin LevFin transaction experience for PE, given that the window of time we work on deals is a lot shorter than M&A or coverage bankers (thus, less time in the weeds
28 Jan 2021
I have accepted a Risk Management job at a large (too big to fail) bank in NY, i-banking division. 1. What is the job like in terms of hours/pay/experience/exit opportunities? 2. How difficult is it to move into a hotter division, say, i-banking or LevFin? Do you know anyone who moved from middle office to front office (anyone from RM?)? 3. If it can be done any tips on what to do (if I feel unhappy about RM job, should I talk to HR right away or wait for first evaluation)? 4. If you were to rank RM jobs on prestige, 1 being BO ,say IT, and 10 being i-banking, what would you assign? 5. How driven are the analysts in Risk Management (based on your observation, experience)? Is it difficult to stand out? Thank you.
16 Mar 2018
Hi everyone, I am currently a levfin associate working for a second tier bank in NYC. I am Chinese and planning on moving back to Mainland China for the next year or two, and as such I am curious to know about the potential job opportunities in Mainland China that can utilize my skillsets? I understand Levfin in China is not as robust as US so I thought about PE as an exit as well. However, since LevFin is probably so well-know in mainland so I am not sure if my experience will be fairly valued by the PE shops in China. Appreciate any insights you can share with me.
07 Jun 2021
Hi guys. Having seen various ways of structuring a debt schedule I am still trying to find a simpler and more user friendly way of doing it without super long Min/Max formulas linking to all over the sheet (even for complicated cap structures w. PIK, dividend recaps, etc.). I would very much appreciate suggestions!
03 Jun 2021
I'm pretty interested in the debt side of things and am looking to know the pros and cons of DCM and Leveraged finance. How do they compare in terms of hours, exits, interesting work, etc? The main exits I would be interested in are private debt funds like Ares / Golub or credit hedge funds.
25 Sep 2020
I'm interning for a MM bank this summer under their LevFin group. Through networking, I've heard that M&A is really the place to be if you want to move into growth equity, so I'm wondering if I should think about lateraling to a different group.
29 May 2021
Hi everyone, I recently received an offer at JPM in risk management as a SA' 22. My end goal is to break into IB. I may have a chance this summer to still secure a spot as I have been networking but I'm not sure. If I were to take the risk job and get on FT, does anyone have suggestions on breaking into investment banking? I have heard that some people move internally to LevFin.
25 May 2021
Hi monkeys, I'm new to the industry here and I noticed Deutsche Bank have a Leveraged Debt Capital Markets team (LDCM). How does this differ from typical DCM and Leveraged Finance? I was wondering if anyone could shed some light on this as I haven't seen it in any other firms? Thanks
21 May 2021
Hi, I am interviewing for a Debt Advisory boutique and I have a c.3 hours debt capacity case study coming up in the next few weeks. Anyone have any insights on what such a case study would entail, where I could find simulations or more in general how to better prepare myself? I haven't got a LevFin background so any pointers would be very helpful.
09 Dec 2020
2nd year Credit Analyst for GE Capital type large undewriter looking to get into any Lev Fin group? Other than networking, anything I should be preparing for? Advice?
13 Dec 2016
Hey Everyone, I see RBC Capital Markets is hiring a bit in DCM. Does anyone have any insight into what the day to day, culture, and work life balance is like? I figure it's typical DCM, preparing org materials, market updates, etc. Thanks in advance
13 May 2021
Hello monkeys. I've accepted a job as a commercial banking analyst at a MM firm upon graduation with hopes of eventually breaking into lev. fin down the road, likely post-MBA. Is this is a feasible career path and what would be the best way to approach? Without giving too much away the bank I'm joining is a MM leader that is involved in a lot of PE deals and the role is known for being more modelling heavy than most commercial banking positions. I also have the opportunity to join either a debt capital markets, loan syndication or financial sponsors group following the initial training period
16 Jan 2016
Dear all, I will be sitting a Cash Modelling test later this week at a BB Lev Fin team. I have been trying to find out as much as possible about how such a model looks like and what are the main assumption included, however, I have been unsuccessful so far. It seems to be different from the standard LBO, DCF, ect. Has anyone worked with a cash flow model for debt repayment purposes? Any inputs will be highly appreciated! Thanks
05 Jun 2017
I was just shown this site by a friend. With the amount of misinformation on here, I thought it reasonable to field some questions while I'm on vacation. My background is two years at JPM SLF and now finishing my first year at Blackstone. I'm happy to answer anything about the process, lifestyle, pay, etc. from the UG level all the way beyond b-school (as best I can). Please keep your posts organized, and your questions concise. Fire at will.
06 Jun 2011
How do you think the Lev Fin groups will fare in 2020-2022/23? Obviously we don't know what will happen w/ COVID, but I think it's reasonable to say that a widespread vaccine will be developed by early 2021 & there will be a widespread recession over the next couple years. From a few conversations I've had, I get the feeling that some PE firms seem to be sitting on a bunch of dry powder but are hesitant to pick up new LBOs in the short term. In the meantime, these firms are focusing their time on liquidity solutions & other measures for their portfolio companies that are running out of cash
21 May 2020
Hey all, Did anybody who interviewed with BAML in Charlotte this past friday hear back with an offer/rejection? If you did, can you post when you heard and for which group? I know it's still early, but I'm just wondering if they gave out any offers on Friday. Thanks!
17 Oct 2010
Can anyone comment on the Barclays Capital Leveraged Finance group in NYC? Is it a team that works 100+ hours and is it an intense group (lots of yelling from MD's etc)? Any info about the team would be much appreciated.
02 Apr 2010
i am evaluating two offers (both in nyc) as a second year lateral from a smaller bank - which is better for exit opps to decent PE funds (probably a tier below Madison Dearborn or JLL) - also, if i decide to stay in banking beyond the 3rd year, which is better for transferring to an international office (i.e. london, singapore, etc.) thanks.
09 Dec 2010
Hi WSO, I have interviews coming up for a position in a private debt fund - as I have never worked in DCM/LevFin before, I am basically starting my preparation from scratch. Would anyone have any valuable insights and suggestions into how to best prepare? Any current market trends / sources to read upon this to be best prepared? I've also seen that the Distressed Debt Analysis book has been pointed out as suggested reading - would this be a good starting point / relevant for interview prep?
20 Jul 2015
Hey guys, I rarely work in anything related to nuances in debt, and I'm here all night working through a project that requires a better-than-decent understanding. Brilliant. My questions are related to classification, so not bad...but resources online aren't super clear: Are investment grade syndicated loans senior secured or unsecured? What about leveraged syndicated loans? Also, how does this differ from investment grade and junk bonds? Finally, are revolver, Term-A, Term-B, etc. always fall under the umbrella of either investment grade or leveraged? If so, which one? If not, does it just
22 May 2014
Anyone have any insight on the lev fin group at Citizens Bank? I'm curious as to how the group is structured given that it seems to sit within a commercial bank. Would also be helpful to understand how the detachment from RBS is affecting the group. Thanks in advance.
13 Nov 2015
The leveraged loan and high yield markets are currently on fire! Issuance is up 30% yoy, despite 2009 being a very strong year in issuances. Bank of America was leading the charge in market share, beating JPMorgan and taking 24%. JPMorgan, the nearest bank was only at 14% market share, due to its conservative underwriting standards. According to Ioana Barza of Thomson Reuters, "The U.S. syndicated loan market is firing on all cylinders heading into the fourth quarter. Although increased volatility is becoming a market staple and poses challenges for underwriters, the upside is that loan issuance has rebounded on the back of a strong bond market.
25 Oct 2010
Can anyone shed some light on any leveraged finance groups that sit on the West Coast? I'm only aware of WF in SF but looking to see if any other MM/BB LevFin groups are in CA as well.
18 Feb 2016
Hi Everyone, I'm not too familiar with this product group within banks, but how would it stack up in terms of exit opps vs. other product and coverage groups at banks (M&A, Fin. Sponsors, TMT, etc.)? If the group covers various aspects of capital structure along with lbo model analysis, is PE generally the route that analysts take after the IBanking stint, or are there other good exit opps as well from Lev. Fin.?
10 Apr 2012
Any thoughts on this group? I have found much info on WSO (older threads mostly on WF) and internet in general, but I understand that this group varies from bank to bank. Anyone with more specific information? What about exit opps? Modelling? Transferable skills? (this is for a summer analyst role in Europe, probably UK) I'll have an (informational?) interview with Head of Execution for EMEA. What can I expect and is there anything smart that I could ask in addition? Many thanks for any insight you can provide!
17 Mar 2013
Lev Fin seems to be one of the more variable groups I've heard in terms of average days. Specifically speaking, how do hours compare between BBs vs. Elites vs. Boutiques? Obviously the days are much slower than a DCM group but nature of the companies you advise could cause you to be in the office until 4AM. In percentage terms, what would the consensus be for the amount of 85+ hr weeks you will work in Lev Fin?
29 Apr 2013
Would be entering as an Associate, both the Lev Fin group and Real Estate are Top 5 in league tables. PE down the road is definitely an interest, but not necessarily the main goal. Real estate is an interest, but not necessarily sold on a career in real estate either. Otherwise, pretty indifferent to industries and like the industry variety of a generalist role / product group. Thoughts? Pros and cons of each?
08 Feb 2011
I have a good shot at an opening at CIT within their Tech underwriting Lev Fin group. Most of what is written about them is 4+ years old on here. Anyone have an idea of how CIT has re-positioned themselves since crisis or even 3 years ago? Like are they "shit", as one monkey divulged on an old 13' post? I know I could make things happen and spin out to PE/IB if I took it, just want to make sure it's not a trap -- their earnings haven't been pretty lately at all. Thanks.
20 Jun 2017
Does anyone know which BB and middle market banks with LevFin groups in Chicago? I believe JPM and BMO do, but is that it? Likewise, does anyone know which private credit groups (direct lenders) are in Chicago, other than Anteres, Twin Brook, and Madison Capital? Thanks in advance!
19 Sep 2019
Nomura IBD (mainly M&A and LevFin) or BNP Paribas (Acquisition Finance)? Both are off cycle internships in Europe. I feel the personal fit at both banks is good. The BNP team deals only with corporate clients (PE is handled by another team), however, they offered me to join the M&A team for one month. The PE exposure is higher at Nomura and they had a fairly good conversion rate last year. However, I feel BNP is the better brand. What do you guys think?
13 Jun 2017