What are exit options for HIGH YIELD DEBT? Forum

[Anonymous User]

I know Cravath, Davis Polk, and the like excel at this type of work. Where do these attorneys typically wind up after say 5 years or so? Is it tough to get in-house positions with this type of experience--compared to say, M&A--because the work is so niche? Couldn't find much in search.

[Anonymous User]

the firms you named don't have attorneys who do solely high yield work, chances are the associates who do high yield work at places at dpw/stb/s&c/cravath also do equity-side deals, investment grade deals, etc. contrast that with a firm like cahill that really specializes in high yield work.

in-house gigs at the major banks are very much open to a capital markets/securities mid-level from a top tier firm.

[patogordo]

damn i thought you were talking about student loans. i have some high yield debt that i would like to exit.

[Anonymous User]

I know Cravath, Davis Polk, and the like excel at this type of work. Where do these attorneys typically wind up after say 5 years or so? Is it tough to get in-house positions with this type of experience--compared to say, M&A--because the work is so niche? Couldn't find much in search.

Poster above has it right; DPW and Cravath are not good examples because they are not doing a ton of high yield work (especially lender-side) and they force you to do lots of stuff in addition to it. The kind of specialization you're thinking of is a problem at the firms with big, highly profitable lender-side practices, the kinds of places who will run multiple trees on the same deal: Cahill, W&C, Latham, Paul Hastings and many others. Simpson is an interesting case because they generally encourage more specialization early in (not limited to their high yield practice) but they do a mix of borrower-side and lender-side.

The market for high yield has been so hot for so long that there hasn't been a ton of concern about exit opportunities - generally, folks who do high yield in a good group have had tons of firms ready to scoop them up if they need a change of scenery, and firms aren't really eager to push out the handful of senior associates who can run these (very lucrative) deals.

That being said, at the highly specialized places, the Cahills and the like, the non-firm exit opportunities would concern me. I'd be interested in hearing from another associate on the board (if any) who can report from that context, particularly for folks who are more senior and have done nothing else for four or five years.

If you're doing high yield as part of a balanced finance training - a little high yield here, a little IG debt there, etc. - then you'd have the same exit options as any well trained transactional lawyer.

[Anonymous User]

I'd imagine underwriter-side high yield debt work could lead to in-house at a bank that in doing the underwriting.

[Anonymous User]

I'd imagine underwriter-side high yield debt work could lead to in-house at a bank that in doing the underwriting.

In my personal experience there isn't much in-house staffing on high yield deals. I guess there's someone out there negotiating indemnity provisions and non-reliance letters ad infinatum, but I'd rather blow my brains out than be that guy.

[Tiago Splitter]

I got the impression that anyone at Cahill who wants a secondment with a bank can get one, and I imagine that's where a lot of people exit to.

[Anonymous User]

Yeah that job doesn't sound like the most exciting role. But, then again, if that guy has 5 years of experience at DPW/STB/CSM, then he's probably making 230k in-house at a bank to negotiate those indemnity provisions..

[Anonymous User]

OP here. Is it possible to get a legal role at a HF or PE firm with this type of background?

[Old Gregg]

OP here. Is it possible to get a legal role at a HF or PE firm with this type of background?

Probably best to work in a PE or HF practice if you want to exit to a PE or HF...

[Anonymous User]

As if hedge funds and private equity funds want their debt positions to have low yields...

[itbdvorm]

OP here. Is it possible to get a legal role at a HF or PE firm with this type of background?

the guys those places will really want of this side of work are on the sponsor side. so you're looking at places w/top PE practices (STB, LW, K&E, etc.). that work can be brutal though, and you'll really need to be a star to stand out because as opposed to lender-side work the sponsor-side deals tend to have heavy partner involvement...

[Anonymous User]

What are the highest paying exit ops that S&C, cravath, Skadden senior associates can try to realistically move into? Since it sounds like HF and PE is mainly off the table and those firms usually pay very well even for legal roles (anecdotal information).

[Old Gregg]

What are the highest paying exit ops that S&C, cravath, Skadden senior associates can try to realistically move into? Since it sounds like HF and PE is mainly off the table and those firms usually pay very well even for legal roles (anecdotal information).

The PE roles might pay well, but you'll still be working your butt off for it. It's not 9-5 in-house, and profit-sharing and carry isn't market for such jobs unless you're heading into the sponsor as a GC.

If you want to make a ton of money and you didn't get a job at one of the usual suspects (hint: they ain't Cravath, S&C, or Skadden), you chose the wrong profession.

[Anonymous User]

What are the highest paying exit ops that S&C, cravath, Skadden senior associates can try to realistically move into? Since it sounds like HF and PE is mainly off the table and those firms usually pay very well even for legal roles (anecdotal information).

The PE roles might pay well, but you'll still be working your butt off for it. It's not 9-5 in-house, and profit-sharing and carry isn't market for such jobs unless you're heading into the sponsor as a GC.

If you want to make a ton of money and you didn't get a job at one of the usual suspects (hint: they ain't Cravath, S&C, or Skadden), you chose the wrong profession.

ITT: Zweitbester shatters TLS mantra that CSM/S&C provide the best chance at the highest all in comp legal in house positions.

[Old Gregg]

I don't know if CSM, S&C, whatever lead to significantly more lucrative exits than other firms. I'm sure there are people at those firms who go on to extremely lucrative positions. But then again, I know people at my V10 who have done similarly.

But those positions aren't commonplace or frequent. And if you're after those positions, going to law school and then working at a big law firm in NYC is an awfully circuitous route to take. If you really want to be business side at a hedge fund or a private equity fund or an investment bank, you should have gone (or consider going) to business school instead.

And the intensity of those jobs makes even working at S&C a walk in the park. When a finance client calls on a Friday evening asking for something that will take your weekend to produce, he is most likely not apologizing (not just because he's your client, but also because) they have no concept of not working weekends.

[Anonymous User]

How much do these "top in house" legal positions pay at HF/PE funds? 200k all in?