The Secondary Wave

📰 Welcome to career.credit
Good morning, dealmakers.

Fresh loans are harder to come by, and plenty of 2021-era financings need breathing room. That mix is creating a boom in private-credit secondaries, the market for trading loans and fund stakes that already exist.

If “secondaries” still sounds like an equity-only topic, today’s issue is for you.

Let’s dive in 👇

🧠 Deep Dive: What Are Private-Credit Secondaries?

A secondary deal is simply buying a loan—or a slice of a credit fund—from someone who already owns it. The seller gets cash today; the buyer gets a shot at solid returns, often at a discount.

🔎 Typical deals include:

• Fund stakes: An investor sells their commitment in a direct-lending fund to free up capital.

• Loan portfolios: A bank or lender off-loads a bundle of loans to tidy its balance sheet.

• Single large loans: One chunky loan changes hands so the seller can reduce exposure.

• Sponsor clean-ups: A private-equity firm reshuffles older deals into a new vehicle and brings in fresh investors.

💥 Why it matters:

• Pricing: Buyers often pay 2–15 % below face value, boosting yield.

• Information gaps: Data rooms can be thin, so good judgment wins.

• Career edge: You learn to analyse quickly and negotiate hard skills that translate into almost any credit role.

📘 Career Tactic: Become the “48-Hour Valuer”

Secondaries move fast. The first bidder with a solid view of value usually wins. Here’s how to build that muscle:

1. Collect data in advance
   Set up alerts for loan notices, fund reports, and broker emails so you’re never starting from scratch.

2. Track past trades
   Keep a simple spreadsheet of what similar loans or fund stakes have fetched. Patterns beat guesswork.

3. Stress-test two numbers
   Focus on the borrower’s cash flow and the likely exit price. If both hold up in a downside case, you’re close to fair value.

4. Use a one-pager
   Summarise your thesis, key risks, and walk-away price on a single sheet. It forces clarity and speeds approvals.

5. Build broker relationships
   Return calls. Even on deals you’ll pass on. Quick feedback keeps you on the “first look” list next time.

🧠 Speed + clear thinking is the winning combo.

📅 Coming Friday: 2025 Private Credit Compensation Report

We crunched pay data from hundreds of professionals - base, bonus, carry, and more, by level and region.
Subscribers get the full report in their inbox this Friday. Keep an eye out!

🧭 TL;DR

✅ Trading existing loans and fund stakes is booming as investors look for cash and buyers hunt for yield.
✅ Discounts and limited info create pricing gaps—great for those who can decide fast.
✅ Hone your “48-hour valuation” skill now to ride the wave.
✅ Don’t miss our full 2025 Private Credit Compensation Report this Friday.

New opportunities, sharper skills, better positioning.

See you Friday.

— James
Founder, career.credit & Futura Search Partners