Leveraged Finance => Private Equity
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.?
According to my contacts in PE, all of these three groups are good enough to get you in PE. The competitiveness of the group appears to be more like Leveraged Finance > Financial Sponsors > M&A. This is based on someone who went through JP Morgan Leveraged Finance group.
I think leveraged finance / financial sponsors are better feeders into PE, as long as the group actually does LBO modeling. Leveraged finance groups differ a bit in function across the banks.
Ok, great! Do you have any idea which banks (BBs) one should target if planning on going into a Lev. Fin. group? I've heard JPM and BAML are supposedly well perceived by PE firms?
I am sure all the BBs have it. You should also consider firms outside of BB. The tricky part is some firms do not strictly call their Leveraged Finance group as such. For example, I recently spoke with a director at RBS at Connecticut office, who does Leveraged Finance but their group is called "Global Banking & Markets". Or a friend who works at CIT group, where they simply get grouped under "Healthcare Banking". Smaller banks get their Coverage and Product groups lumped together and the distinction is less clearer.
From my previous experience in getting into IBD, I would suggest not to focus too much on specific groups given the market condition. Once you are in the firm or have a few years of experience, it is much easier to transfer. Always say something like I am interested in "M&A" as a product group and "Consumer" as a coverage group but I am open to other coverage and product groups as well. You don't want to shoot yourself in the foot, when there is a spot open as "Chemical" coverage group while you keep mentioning about "Leveraged Finance".
Other Monkeys might have different opinions on this. I don't work in IBD. I am in Equity Research. This is based on my previous experience while trying out for IBD. Hope it helps and best of luck.
That's what RBS call their IBD.
Lev Fin and PE (Originally Posted: 09/23/2012)
I've read on WSO and other sites that Lev Fin is supposedly heavily recruited by PE, up there with M&A.
However, I spent a while looking at Linkedin profiles of MF PE guys and most of them come from M&A or (less often) industry group backgrounds. I found very few lev fin guys at the MFs, except in their capital markets groups and credit-funds.
What kind of PE placement do the top Lev Fin groups (JPM/BAML/CS) really have right now? Would it be advisable to choose Lev Fin over M&A or an industry group? What about BB Lev Fin vs an Elite Boutique like Evercore or Lazard? Are the main opportunities in distressed debt funds and credit funds rather than PE?
(Btw, there seems to be a lot of hearsay on this topic all over the site so please only respond if you know what you're talking about)
i wouldnt count on BAML/CS LevFin..
just saying..
Why not? Do you know what you're talking about?
...check league tables. Baml is consistently top 1-3
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