Debt finance vs project finance? I’m currently a junior and considering a lateral move from a lev fin group to a project finance group. Seems interesting to be working on tangible projects and renewables. Does anyone have experience in these fields and can make a comparison?

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Yes I’ve done both and I think it really depends on preference. I do more LevFin and prefer it but I think that’s by virtue of having done more of it and so it’s more familiar and am therefore better at it.

In LevFin, I think you need to become a master of covenants and knowing the “market”. In PF, I spend more time negotiating mechanics and the deals can be more tailored to a specific project and so you can’t necessarily always rely heavily on a precedent.

In terms of having more exit options, I think I would have more options if I was more fluent in PF.

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What kinds of exit opps?

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I’ve done both. Lev fin is much more emergency driven than PF, largely due to deal timelines. PF deals take months vs weeks. I think you’ll work about the same amount of hours in either practice, but in my experience you can plan PF workflow better, leading to less late nights and weekends than in lev fin.

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