Private Credit to Fixed Income?
Hi All, I'm an incoming associate 1 at a more special sits oriented private credit shop and am thinking about a move to LO fixed income, or even a CLO. I enjoy the work of credit and the comp in the private space is great (350k+ with 3 YOE), but I am completely beyond burnt out and have found the private deals process/intensity breeds toxic people. Basically, I want to work a job where a 80 hours a week isn't a base line.
Has anyone seen this move happen? I understand that there's a macro perspective I don't have, and also have almost no experience in relval anything, but I'm willing to learn (and take a pay/rank cut). So far headhunters have been lukewarm about putting me in front of traditional T1 AM, and usually push me towards either vanilla direct lending (mind-numbing) or pure special sits (sweatshops). I've thought of the following to help my chances:
-
CFA, heard mixed things about its value in the space
-
Start putting together pitches on HY opportunities (have some experience in pull-to-par trades I could use)
-
Spend a year or 2 in credit research (would rather not do this)
-
MBA (would also rather not do this)
Definitely keen to hear anyone's thoughts.
Based on the WSO threads and discussions, transitioning from a specialized private credit role to a more traditional fixed income or CLO position is indeed a path some professionals consider, especially when seeking a better work-life balance. Here are some insights and suggestions based on similar transitions discussed in the forums:
CFA Certification: While opinions on the value of the CFA in fixed income spaces can vary, it generally remains a respected credential that can demonstrate your commitment and expertise in financial analysis and credit assessment. It might not be a game-changer but could certainly bolster your resume, especially when transitioning to roles that value deep analytical skills.
Developing Investment Pitches: This is a proactive approach. Crafting pitches on high-yield opportunities can showcase your ability to identify and analyze investment opportunities, a skill valuable in both LO fixed income and CLO roles. Leveraging your experience in pull-to-par trades could provide a solid foundation for these pitches.
Credit Research Experience: While not your preferred route, spending some time in credit research could provide you with a broader perspective on market dynamics and enhance your understanding of different credit instruments. This experience could be invaluable, making you a more attractive candidate for traditional asset management roles.
Pursuing an MBA: An MBA could provide a structured way to broaden your network and gain exposure to a wider range of financial theories and practices. However, it's a significant time and financial commitment, so it would be crucial to weigh the potential ROI carefully.
Additionally, networking within the industry and possibly finding a mentor who has made a similar transition could provide you with more personalized advice and potentially open doors to opportunities that are not widely advertised. Engaging in relevant professional groups or forums, such as those on WSO, could also help in gaining insights and making valuable connections.
Sources: Private Credit Comp, Private Credit to Liquid Structured Credit?, Associate at a CLO Fund moving to Direct Lending, Private Credit -> Public Credit Exits?, Restructuring --> Direct Lending / Private Credit
When you say credit research you mean like sell side publishing? And trying to pivot to buy side credit research?
I would think this is def posssible what has your path been so I can help more
Eius quo eveniet nihil est eaque. Ut voluptatibus et tenetur qui.
Odio aut sit voluptatum laborum. Vitae et laborum libero aut distinctio. Et in ut odio qui dolore necessitatibus.
Quas aut ad fuga. Possimus minima saepe quae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...