5 Essential Tips to Secure a Job in the Private-Credit Boom

New York: The lending scene is buzzing with activity as asset managers dive into private credit, creating a real gold rush. This surge has ramped up the need for skilled professionals, but how do you get your foot in the door? Recruiters and consultants have shared some key insights on the best paths to take and what to avoid.

Lending isn’t new to Wall Street, but the current boom is leading to a hiring frenzy that’s expected to grow even more intense by 2025. After the 2008 financial crisis, banks stepped back from risky loans, leaving a gap that firms like Apollo and Blackstone have filled by underwriting loans for real estate and corporate buyouts.

From New York to Singapore, asset managers are jumping on this trend. Recently, Goldman Sachs announced its new Capital Solutions Group to meet the rising demand for alternative lending options, mainly for corporate clients.

With private credit gaining traction, the hunt for talent is on. However, finding the right candidates can be tough, especially as the demand for corporate lending is set to rise in the coming years. Business Insider spoke with several recruiters and consultants to uncover what it takes to break into this hot sector, where the career paths aren’t always clear-cut.

Most private-credit firms prefer candidates with relevant experience, especially at senior levels. But with the increase in nonbank lending, new opportunities are emerging. If you have a good grasp of credit and can handle some risk, there’s a lot of potential to earn big in this field.

Interestingly, the work-life balance might be better than traditional Wall Street jobs, though it’s not exactly a 9-to-5 gig. You might find yourself working 9-to-8, which is a bit more manageable. Still, be prepared for some late nights and early mornings when deals are on the line.

According to John Rubinetti from Heidrick & Struggles, private-credit professionals often enjoy a steadier workflow compared to dealmakers, who are always on the lookout for new targets. They might close several deals a year, unlike private-equity folks who juggle many but only finalize a few.

So, what skills do you need to break into this booming sector? For senior roles, having direct private-credit experience is a big plus. Recruiters are looking for candidates with a solid track record and connections in the industry.

For younger talent, investment banking is a common stepping stone into private credit. The skills learned there, like evaluating company profitability and structuring investments, are crucial. Backgrounds in leveraged finance can be particularly beneficial since they align closely with private credit.

However, moving from investment banking to private credit can be tricky at the senior level. Recruiters warn that it’s not just about closing deals; it’s about making the right investment decisions. Some larger firms are still open to hiring senior bankers, especially if they have the right experience and can be trained.

Private equity experience can also help, but it’s not a guaranteed ticket. While private equity candidates have a good foundation, they often lack specific credit skills. The longer you stay in private equity, the harder it may be to transition, as debt experience becomes increasingly important.

Lastly, if you’re eyeing a private-credit career, it’s best to skip the on-cycle recruiting that’s common in private equity. Many top candidates for private credit don’t follow this path. Instead, they focus on gaining experience and skills before deciding their next move. It’s all about being prepared and seizing the right opportunities when they come along.