JP Morgan Restructuring
Does anyone have anyinfo onJPM's Restructuring group? I believe it sits in Lev Fin. I am familiar with EB's having significant restructuring groups, but neverreally thoughtBB's would given potential conflicts of interest.
I'm just wondering what the group does, and who their clients typically are.
edit: Is it possible to exit to distressed funds/PE, or maybe lateral to restructuring at anEBfrom aBBrestructuring role? Or would it make more sense to just start off in a Lev Fin Originations role?
Comments (13)
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Gotcha, that makes a lot of sense. Would you know if its possible to exit to distressed funds/PE, or maybe lateral to restructuring at anEBfrom this role? Or would it make more sense to just start off in a Lev Fin Originations role?
BBrestructuring groups are much more centered around the lending side of the Restructuring space rather than the advisory. As you stated, if a bank as any exposure to the company they cannot be their advisor like aPJT or Lazardwould.
The focus ofBBrestructuring groups are DIP financings, Exit financings, Rescue financings, Exchanges, and any other "tougher" deals where a particular company can't access regular-way capital markets. There are cases where BB's have been an advisor to a company, but this is not as common just due to the size of the balance sheet. Yes you sit in LevFin in aBBrestructuring group and you're doingHYbond and LL issuance, however your deals are just more complex than the regular-way stuff.
Would one recommend starting in this type of role or a more traditionallevfinrole for credit investing e.g. for direct lending, creditHF, senior loans etc - for example would it be easier or harder to exit/interview for direct lending than from traditional levfin?
AllBBRXgroups are essentially DIP financing groups (JPM, BARC,DB,GS有standaloneRXgroups that do this, other banks typically just run it out of LevFin).
Yes it would be quite easy to move to anEBRXrole - story would be to get more exposure to the advisory side, not just financing
They are niche groups though, would suggest starting in LevFin unless you are dead certain on pursuing distressed
Note theseRXgroups are different from internal loan workout groups - the latter sits within credit risk, the former sits within LevFin origination. Both get exposure to theRX/ bankruptcy process but pay will be different
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I'm interested in credit investing with a preference for distressed (but I want to keep options open, within credit investing). WouldJPMRXbe a good fit? Out of the "pods" or whatever withinJPMLevFin, would I be better off in a different pod in terms of optionality?
levfinteams are a natural feeder to debt funds and almost all the guys in the top funds come from there. If you want to do distressed debt investment,levfinwould still place you well, andJPMLevfinteamis top notch, but you may get one up if you go to theHoulihan Lokey,PJT,Lazard. Then again none of this is real until you have an offer in hand. Bottom line : if you have an offer fromJPMlevfin, take it. If it's from the loan work out /RXteam, make sure you ask where it sits and whether it's a revenue generating function. See my earlier response, most likely it will sit with risk and you don't want to start there as very difficult to get out of it (and pay is crap)
How would loan workouts stack up in terms of experience and exits?
not sure that's true -RXas you said is an internal function for a bank and usually sits with its risk department (thecase with Citi,BAMLandGS),as you said, it's all about managing the bank's exposure. It does NOTsit withlevfin.
There is no upside for these teams. If you did a stellar job, the bank will not lose money, but the path often leads to selling positions at a price which does indeed crystallise losses as the bank does not want to have high Non Performing Loans ratio and wants to minimise the Loan Loss Reserves. That means it's very difficult to quantify in $ terms how well did the team do, and you typically get crappy bonuses.
The job is not uninteresting but exit ops are few. I have seen some of these guys go to theRXadvisory shops (PJTs of this world) but it's very different being a lender calling the shots and demanding all analyses and being an advisor actually driving the process and always anticipated next move in what is often quite a complex situation
SeveralBBs有aRXteam (front office) that does offensive DIPs andsits within Leveraged Finance
Agree with your comments on the internal loan workouts group though - they get comped more in line with credit risk but is a good "lifer" kind of job with okay-ish pay and decent hours
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