Credit Risk Management - Hedge Funds / Private Equity
About The Position
Credit Risk Management (CRM) is a key function in protecting the Firm and ensuring prudent risk-taking. CRM is responsible for analyzing counterparty creditworthiness, assigning internal credit ratings, establishing and managing credit risk limits in accordance with the risk tolerance. In addition, CRM measures and controls credit exposure associated with lending, financing and trading activities. CRM is a “Second Line of Defense” control function. Within CRM, the Hedge Funds (HF) and Private Equity (PE) credit team is responsible for managing all credit risk involving this large and diverse set of clients. The HF & PE Team sits within the Counterparty Credit Risk silo organizationally and works closely with colleagues in other areas of risk and other functions globally including, Front Office, Legal, Finance, Operations and Collateral Management. Credit Risk Management is looking to hire an experienced Vice President in New York responsible for managing credit exposures to Hedge Funds and Private Equity Funds. The candidate will be responsible for independently managing and monitoring exposure to a dedicated portfolio of counterparties generated by activities including OTC derivatives, securities financing, prime brokerage, loan agreements, and other kinds of structured or bespoke transactions. The individual will also support the day-to-day management of the team and assist the enhancement of specialized data analytics and portfolio monitoring tools.
Requirements
- Minimum of 10+ years’ of relevant experience in managing credit risk at a major financial institution, including application of delegated approval authority.
- Experience in both hedge funds and private equity transactions / structures strongly preferred
- Understanding of alternative investment strategies (long/short equity, event-driven, credit, macro, buyout, growth equity, distressed) and well versed in leading due diligence meetings with clients
- Product knowledge of all major derivative instruments and Prime Brokerage products/services with a full understanding their respective risk characteristics.
- Understanding of master trading documentation, particularly International Swaps and Derivatives Association (ISDA), Global Master Repo Agreements (GMRA), Futures and Options (F&O) and Prime Brokerage agreements.
- Advising and/or assisting teams in a fast-paced, high-pressure environment with the ability to prioritize and complete tasks within team environment
- Experience working closely with various business partners such as sales/trading, market risk, legal, operations and client integration
- Analytical mindset and problem-solving ability with a quantitative aptitude.
- Strong verbal and written communication skills; should be at ease in communicating with Sales and external clients.
- Identify the underlying causes of problems faced by you or your team and define a clear vision and direction for the future.
- Evaluate all the options for resolving the problems and effectively prioritize actions or recommendations.
- Inspire team members through effective communication of ideas and motivate them to actively enhance productivity.
- Engage proactively in professional development and enhance team productivity through the promotion of knowledge sharing.
- Foster a culture of inclusion and psychological safety in the workplace and cultivate a "Risk Culture" (Challenge, Escalate and Respect).
Responsibilities
- Assess creditworthiness of hedge funds and private equity funds through comprehensive analysis of fund strategy, performance attribution, liquidity profile, leverage, and manager or sponsor strength
- Perform client due diligence and financial analysis and summarize in high quality written credit approval memos and reviews; approve internal counterparty ratings and limits under delegated authority.
- Display a detailed understanding of the credit risk framework, including relevant exposure metrics and stress testing.
- Perform ongoing monitoring including monthly/quarterly NAV reviews, performance attribution analysis, redemption tracking, and proactive identification of deteriorating credit quality
- Review and approve trading activity, margin requirements and structural enhancements to transactions; challenge structured transactions, articulating the credit risk viewpoint to senior management and committees as appropriate.
- Negotiate legal documentation for traded products while having a good understanding of associated covenants
- Develop and maintain relationships with senior stakeholders in Front Office and client organizations.
- Identify emerging risks and trends in the alternative investment space.
- Lead or participate in firm wide projects, such as credit policy development, system implementations, and regulatory response efforts; mentor junior members of the team.
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What This Job Offers
Job Type
Full-time
Career Level
Mid Level
Education Level
No Education Listed
