Recently recruited for RX SA 2025 roles, so sharp on those technicals and interested in distressed. Saw this position pop up.
Is it worth attempting to interview? Would the technicals I learned about distressed credit be applicable here or is it an entirely different set of knowledge?
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Based on the WSO Dataset, diving into an Ares Direct Lending role can be a strategic move, especially if you're already equipped with technical knowledge in distressed credit. While the focus in direct lending and distressed credit differs, there's a valuable overlap in skill sets that can benefit you.
Applicability of Distressed Credit Technicals: Your understanding of distressed credit will indeed be beneficial. Direct lending involves assessing the creditworthiness of borrowers, similar to evaluating distressed situations, albeit with a focus on healthier companies. Your skills in financial analysis, risk assessment, and understanding of complex financial structures will be directly applicable.
Learning Curve: Expect a learning curve as you adapt your distressed credit knowledge to the direct lending space. Direct lending often involves senior debt and secured lending, focusing on stable cash flows and lower risk profiles compared to distressed credit. However, your analytical skills and ability to navigate financial distress will be advantageous in assessing direct lending opportunities.
Career Strategy: Interviewing for the Ares Direct Lending role could be a strategic career move. Ares Management is a reputable firm with a strong presence in the credit market. Gaining experience in direct lending could diversify your skill set and open up various career paths within private credit, including opportunities to work with distressed assets in the future.
Cultural and Strategic Fit: Consider the work culture and strategic focus of Ares, especially in terms of their emphasis on process, memo creation, and the historically narrow investment committee strike zone. Your background in distressed credit might bring a fresh perspective to their team, especially in evaluating risk and identifying opportunities in challenging situations.
In conclusion, leveraging your distressed credit technicals in a direct lending role at Ares could be a worthwhile endeavor. It offers a platform to apply and expand your skills in a different segment of the credit market, potentially enriching your career trajectory in finance.
Sources: Ares vs. Golub Direct Lending, Ares Credit Direct Lending Analyst Exits?, —, Associate at a CLO Fund moving to Direct Lending, Would YOU Give Me An INTERVIEW? (SA 2021)
If you can handle Rx technicals you should be in very good position when it comes to recruiting elsewhere, especially a credit-oriented shop like Ares.
I like to think of DL as having a similar technical basis as Rx but with more of a real world / investor mindset.
Bump
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