I’ve been working as a credit risk analyst at a major investment bank in London for about half a year now. My focus has been on analyzing corporate financing deals like term loans and revolving credit facilities, plus some private equity NAV financing structures.
I’m really interested in making a move into investment banking, specifically targeting leveraged finance and sector coverage teams. I know M&A groups are typically harder to break into from my background. I’m also considering big four transaction advisory roles as an alternative path.
How realistic is this career switch? What are the main challenges I should expect when trying to make this jump? Has anyone here successfully transitioned from a credit risk role into IB or advisory?
Any insights would be really helpful, especially from people who have actually made this kind of move before.
Transitioning from credit risk to investment banking is quite achievable, particularly with your experience in corporate financing. The skills you’ve developed in analyzing term loans and revolving credit facilities are highly relevant in leveraged finance sectors. Your analytical capabilities in assessing credit quality will serve you well in structuring and executing transactions.
With six months in your role, you’re at an opportune moment to leverage your experience without being pigeonholed. As you approach the next recruitment cycle, highlight how your insights into risk assessment enhance your understanding of deal execution. Hiring managers appreciate candidates who comprehend covenant issues and structural implications from a practical perspective.
Moreover, considering Big Four transaction advisory as a contingency is wise. These roles typically provide easier entry points and valuable M&A exposure. If initial IB applications don’t yield results, pursuing this path can be beneficial. Be proactive in networking with alumni in your desired fields, and also explore any internal mobility options at your current firm, as these transitions can often be more straightforward.
Your timing’s solid - Q1 is when most lateral hiring kicks off. Credit risk folks usually struggle with the technical modeling stuff - DCF, LBO mechanics, comps analysis. These aren’t really part of risk roles. I’d suggest hitting up some financial modeling courses or CFA materials to fill those gaps. Leveraged finance teams will love your credit assessment background, but you’ve got to show you can handle execution-heavy financial analysis. Success rates for credit-to-front office moves sit around 15-20% based on industry surveys - it varies a lot by firm though. I’d target European mid-market banks first. They tend to value real credit knowledge over pure modeling skills. Your private equity NAV experience is gold - great talking points about complex financing structures.
Made a similar switch 3 years ago! Did credit risk for 8 months before jumping to lev fin at another BB. Transition was rougher than expected - had to prove I could keep up with the pace and handle clients. Your NAV financing experience is perfect though, that’s exactly what lev fin teams look for. Try getting involved with deal execution at your current place, even if it’s just reviewing docs. Don’t sleep on mid-market firms either - they’re way more open to career switchers and the experience is just as good. Big four advisory works as a solid backup too.
Your credit background is a huge advantage! Banks love people who get risk structures. Start with internal networking—tons of colleagues have made this jump. Perfect timing!
The biggest shock will be the hours. Credit risk is way more relaxed than IB - you’re looking at 80+ hour weeks with tons of client pressure. Your corp finance experience helps, but start practicing pitch decks and get comfortable with PowerPoint since you’ll basically live in it. Internal transfers are definitely easier if your bank has spots open.