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The Secondary Wave
Trading yesterday's loans has become today's hot-topic
📰 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:
Collect data in advance
Set up alerts for loan notices, fund reports, and broker emails so you’re never starting from scratch.Track past trades
Keep a simple spreadsheet of what similar loans or fund stakes have fetched. Patterns beat guesswork.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.Use a one-pager
Summarise your thesis, key risks, and walk-away price on a single sheet. It forces clarity and speeds approvals.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