Mid RX Group Exits

I’m thinking about joining a mid tier EB RX group (think MOE/PWP/CVP) and wanted to get some clarity on realistic exits.
I’d like to preserve the option for MFPE recruiting but understand it is not as easy as it is often made out to be on this forum unless you come from an EVR/PJT RSSG type shop, with most offers for these mid-tier shops going towards their M&A coverage groups.
I’m also though heavily interested in distressed PE and wanted to see if a seat in one of these shops is enough or I’m fucked by the EVR/PJT guys.
I really do not want to end up in credit, so if these shops are gonna pigeonhole me there I’ll just stick to normal M&A. Thanks.

 

Just do M&A then. Not sure if these names are "Mid" Rx groups but whatever.

The 3 names above gives optionality for MFPE(value-oriented/distressed focused funds) but it's going to be a crapshoot anywhere. Ex: I know people at all 3 firms who interviewed at Apollo/BX type funds out of their rx group or currently work/worked there.

Then again, why would you want to do restructuring if you already hate credit and if you worked the job would be spending 95% working on credit-related tasks?

Edit: your biggest hurdle (regardless of what firm you are at) is going to getting through the headhunters and them being comfortable sending you the opportunities. Once you interview, nobody really thinks beyond that about your group but your performance and overall fit to the team and the investment strategy....

Good luck!

 

The difference is the credit related work in RX differs significantly from the work you'll do in private credit. RX IB imo is significantly more interesting than Private Credit. Ideally RX IB --> Distressed M&A with option to Vanilla MFPE, not RX IB --> Strike out at Distressed/Vanilla MFPE and end up in PC. Just wanted to evaluate how possible the first option is vs. the second at these shops.

 

Based on the insights from Wall Street Oasis, here's what you need to know about exits from mid-tier EB RX groups like Moelis, PWP, and Centerview:

  1. MFPE Recruiting: While it's true that the top-tier EBs like Evercore and PJT RSSG have more established pipelines to major funds (MFPE), mid-tier firms still offer solid opportunities. However, the path to MFPE from these firms can be more challenging and less direct compared to top-tier EBs. Networking and individual performance play crucial roles in securing these opportunities.

  2. Distressed PE Opportunities: Mid-tier EB RX groups are well-regarded in the distressed space, and a position in one of these groups can certainly set you up for a transition to distressed PE. The key here is to leverage the specific restructuring and distressed experience you gain, which is highly valued in distressed PE roles.

  3. Risk of Being Pigeonholed into Credit: While there is a natural alignment between RX and credit roles due to the skill sets developed, being pigeonholed is not a certainty. It largely depends on how you steer your career post-RX. Being proactive in seeking PE roles and demonstrating your interest and capability in equity over credit will be important.

  4. General Advice: If you are determined to avoid ending up in credit and are set on MFPE or distressed PE, you might need to be more strategic about networking, possibly considering lateral moves if necessary. Additionally, maintaining a strong performance record and developing a robust understanding of both the market and technical aspects of restructuring will enhance your profile for PE roles.

In summary, while mid-tier EB RX groups might not have the same direct pipeline to MFPE as some top-tier groups, they still provide valuable experience that can lead to opportunities in distressed PE and potentially MFPE, depending on how you navigate your career post-RX.

Sources: Top Restructuring Groups 2019 & Restructuring Questions, Top Restructuring Groups 2019 & Restructuring Questions, EB’s ranked by exits, Top BB M&A vs. EB RX, EB’s ranked by exits

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Those aren't mid tier names in RX. But that aside....

Honestly I'd focus on a start in a top M&A group (or best as you can). This will give you the most optionally if you still want Vanilla PE

At the associate PE level, it's rarely such a big concern on your history. You just need to be able to:

1. Get the look from funds and HHs

2. Ace the technical tests

3. Have some decent completed deals on your sheet

4. Build good soft skills and your DD skillset

5. One or two buysides helps as you can demonstrate you've worked with PE on their side of the transaction.

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Wouldn’t this preclude one from distressed investing? Or are those top seats only going to the top shops anyway (yes I understand these are great RX groups they’re just not PJT/EVR). I’d like the option to do MFPE but distressed PE as well if that makes sense.

 

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