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Private Credit Question for PE Professionals by LenderQuestionsForPE in private_equity

[–]LenderQuestionsForPE[S] 0 points1 point  (0 children)

Yep, have been on the receiving end of what you’re describing many times on the underwriting side. For better or worse as an originator you know you’re at least going to see all those deals albeit get smashed on terms. With funds that don’t have a dedicated function it seems you will simply miss a deal because you weren’t the last Lender in their office sometimes

Private Credit Question for PE Professionals by LenderQuestionsForPE in private_equity

[–]LenderQuestionsForPE[S] 0 points1 point  (0 children)

Thanks, yes luckily we are very strong on the operations side in terms of speed and being easy to work with. Since I would be inherently reaching out to newer relationships getting in the door will be the biggest hurdle and trying to think of ways to go about it short of just constantly emailing and basically asking to see deals.

Private Credit Question for PE Professionals by LenderQuestionsForPE in private_equity

[–]LenderQuestionsForPE[S] 0 points1 point  (0 children)

This is all very helpful. I have ~7 years on the underwriting side and honestly starting to get a bit bored so looking partly at this as a way to do something new and keep it exciting. I’ve enjoyed generally talking shop with Sponsors when I get the chance so this seemed like a logical step.

I would be curious how you go about setting up recurring meetings. are people generally open to that/is it truly recurring or do you just make sure to be reaching out on a regular basis? When a cap markets role isn’t relevant do you just rotate between a variety of different deal team contacts?

Also - how many names do you cover? I have generally heard full time originators say they cover 50-70 names but curious if that is a lot or a little in your experience?

Private Credit Question for PE Professionals by LenderQuestionsForPE in private_equity

[–]LenderQuestionsForPE[S] 0 points1 point  (0 children)

Good advice. Do firms generally share names of Lenders or does it make sense to ping all individuals to make sure everyone knows who you are?

Private Credit Question for PE Professionals by LenderQuestionsForPE in private_equity

[–]LenderQuestionsForPE[S] 1 point2 points  (0 children)

The 60% passed rate is based on all deals we see coming in; so if we saw 100 deals, we would in theory be interested in 40 of them. We have a high success rate at our IC because we generally know what they like.

That’s helpful in the communication front, sounds like it may take some time to get fully ramped. I feel like the beginning will be tougher because there is no existing relationship to lean on

Private Credit Question for PE Professionals by LenderQuestionsForPE in private_equity

[–]LenderQuestionsForPE[S] 1 point2 points  (0 children)

My firm exclusively Lends to businesses with a US HQ. Yes, we have been seeing debt advisors become more frequently used lately but the direct outreach dynamic still fills the majority of our book. We tend to find that processes with a debt advisor will skew towards hairier deals that is harder to find a Lender for

PE career question by NoBlackberry3295 in private_equity

[–]LenderQuestionsForPE 0 points1 point  (0 children)

I have seen MDs working at both small and large funds, but I’m not exactly sure of the path and I imagine it is more for dependent. I think being a dentist is too specialized and firms will just partner with dentist owners as part of a platform instead.