I think the more technical funds would be tough without more modeling experience. Standard L/S credit might be fine. Normally, recruiters do not take the time to dig into these details, but the problem is that most HF recruiting is off-cycle, meaning that you have to present your own experience without a headhunter to boost your profile. So it hurts in cases like this where you’re in a group that is traditionally known for being technical, but where you did not get much modeling experience.

With regards to credit HF, what is the odd for me to break in if I am in a Levfin group without much modeling? Do have exposure to cap structure analysis and covenants stuffs. Wonder what if distress/special sits would be doable or just credit L/S.

You are better off applying to CB divisions that are linked to IB, yes, but sometimes you can’t tell in advance. The most important part is getting the “Corporate Banking” title that you can use on your resume. And yes, focus on the large banks rather than regional ones if you want to work at a hedge fund eventually.

Thanks again, Brian. Wanted to follow up on this. I’ve applied around and it seems like I’m getting a lot of interest from Corporate Banking recruiters. That said, I’ve read your article on CB. Is it fair to say that I need to be careful in targeting the Corporate Bank divisions that are more closely tied to the investment banking rather than the ones grouped with the commercial bank? Or is it really just the “Corporate Banking” title that I need on my resume? And should I be sticking with the bulge bracket banks rather than regional if my end goal is a credit hedge fund?

Depends what you mean by “superior.” It is a faster and cheaper option, but your odds would still be better if you did a top MBA and then IB. But that’s also at least another 4-5 years, a very expensive degree, etc., and so if you don’t want to wait that long or spend that much, yes, it’s better to move into a debt-related role now if you can do so.

Thank you for the advice, Brian. In your view, would moving into a debt-related role then be a superior option compared to the traditional Top MBA -> IBD -> HF track if my end goal is a credit hedge fund (possibly an ABL fund)?

Low. Not trying to discourage you, but, realistically, credit hedge funds rarely hire from commercial banking teams because the perception is that the deals are easier/simpler and the field is less competitive. Part of the reason HFs hire so many IB analysts is not because of the direct skill set, but because they assume that these analysts have been “vetted” and had to go up against a lot of competition to win their roles (and can therefore work longer hours, do more difficult work, etc.).

If you want to get into a credit hedge fund, your odds would be better if you could move to something like corporate banking or a debt-related group within an investment bank. Something like direct lending could also work, but I’m not sure how much they hire from commercial banking teams.

Most hedge fund recruiting is off-cycle. To move to a HF from an S&T role, you normally need more of a track record with your own P&L (so probably more like 3-5 years). It’s not like IB where they’ll hire you based on some interview questions and a modeling test. You normally need real-world results to move from S&T into HFs.

You could contact headhunters, but since most HF recruiting is off-cycle, you can also network around yourself and find openings.