Hi everyone,
Would really appreciate if members of this forum working in PE/Distressed credit would comment on key considerations for someone working in real estate private equity/structured finance wishing to transition into traditional PE or distressed investing. How difficult will it be to make this move?
To provide some background/context, I am currently working as an analyst looking at structured finance opportunities, primarily in real estate (though will opportunistically invest in other industry opps as well). My company considers opportunities across the enitre capital stack including senior debt, mezzanine, preferred equity and equity positions. Investments are highly structured and bespoke, depending on the asset coverage provided by any pledged collateral (LVR), debt serviceability from available cash flows (ICR, DSCR), sponsor strength and exit strategy.
Aproximately 80% of the deals I look at are in real estate, though we get the odd private company approaching us for growth capital and will look into some special situations or distressed opps. I have not closed any of these PE/distressed debt deals however, even though deal structuring and execution is a big part of what I do. I am also a very adept at financial modeling and comfortable with LBO analysis as well as building operating models (previously worked as credit analyst buying leveraged loans and as an equity analyst). Would not having completed PE/distressed transactions to talk about count heavily against me, even with strong modeling and execution capabilities?
I have come to taken a keen interest in the transactions that shops like Oaktree, Apollo and GSO Capital Partners get involved in and would give my left arm to work at any of these institutions. Would having a background in structuring and documenting credit facilities, intercreditor/suboridnation agreements be considered favourably for this line of work?
Best regards,
Tak.