Hi - not fully understanding where the line is drawn b/w LevFin and Private Credit. I know LevFin does syndicates, but I guess broadly, don't banks in general do everything Private Credit funds do (lending to companies, financing LBOs for sponsors, asset backed)? Appreciate the clarification!

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Banks are regulated institutions with a lower cost of capital but a higher level of regulatory scrutiny and therefore less flexibility to support the company if things get rocky. Private credit shops have higher cost of capital but more autonomy to make quick decisions without all the hoops and hurdles of a bank.

I worked both lev fin and now pc

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Hi VP1 - any chance I can DM or even hop on a call? Have an offer in Lev Lending at a very small bank and if you are comfortable, would love your opinion in understanding if this is a good opportunity given my experience / what I'd like to do. thanks!

banks don’t hold the risk after underwriting (they syndicate it out) while most direct lenders will actually underwrite and hold the debt through the life of the loan

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Makes sense. And if a loan is underwritten by, for example JPM, to hold to maturity, then this will most likely come from it's asset management arm and not its LevFin desk?

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Curious as well. Our LevFin team do mostly structuring and origination whereas syndicate desk do structuring and distribution. Both team do all the internal credit/underwriting and they always have secondment opportunities between the two team so obviously it’s very transferable.

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