Goldman Sachs SSG (Special Situations Group)

SSG seems like the most elite but opaque group at GS. Does anyone have any information about it?

I worked at a top BB IBD last summer and am wondering if I have a shot here. How do they recruit? Somebody told me they only take 1-2 kids a year and are even more selective than GS TMT or Blackstone PE. I'd appreciate any insight into how this group operates or looks for candidates.

Goldman Sachs Special Situations Group

SSG is a group that sits within the Securities Division of Goldman Sachs but operates independently.

Goldman Sachs describes the group in the following way:

SSG is a global, multi-asset class business, specializing in principal investing and lending in all levels of capital structures on a risk-adjusted return basis. SSG is the primary center for Goldman Sachs’ middle-market financing and investing activity. The group lends and invests Goldman’s capital directly to mid-sized companies.

@thenerdyguy" shared that there are four internal groups within GS SSG:

thenerdyguy:
  1. Multi-Strategy Investing - Investing in both public equity and debt
  2. Private Capital Investing - Early state investing, along the lines of late stage VC type work
  3. Asset Investing - Investing in senior securitized debt with claims on some sort of physical asset
  4. Alternative Energy - Investing in energy across the capital structure

GS SSG Interviews

Users explained the process to get into the group below:

@APAE" shared:

APAE - Private Equity Partner:
It is competitive to get an interview, and if you get an interview you certainly need to know your stuff. They take very few undergrads, correct, but that's not because it's the single most prestigious thing under the sun. The simple fact of the matter is that undergrads often have little value to add, and in a group that lean, the logic is "why up the headcount?"

However, the group has been hampered by regulation since the crisis. Its reach is much more limited. Investments were often small, in weird assets, and that exits were limited given how unusual the experience is. I don't personally know anyone who's exited the group so I can't speak to what the exits are like, but the short story is that it isn't as much like working for a distressed hedge fund as it is working for a catch-all group that invests in whatever weird stuff gets by the regulation.

cob92:
Questions were a mix of basic IBD questions, with a few geared toward deciding how you would invest in a company. For example, I was asked what factors I would look for if I wanted to invest and gain steady returns year-over-year, why EBITDA vs revenue, walk through DCF, financial statements, what's in an investment memo, etc.

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Sorry to disappoint but I've heard it's almost impossible to get into GS SSG. Much tougher than any IBD group (including GS TMT). You have to realize that this is essentially a buy-side exit-opp for top IBD analysts and HBS grads, so assuming you're an undergrad, this is going to be an uphill climb. Unless your resume is really impressive (I mean really impressive - summa cum laude status), it's probably not even worth trying to network in. Ken Moeslis's son is an example of the kind of kid who manage to land a job there out of college. Good luck

 
mrb87:

by all means you should absolutely focus your life on getting into a group about which you seem to know nothing

LOLOLOL this guy is on a roll today

Just don't confuse Special Situations Group w/ Special Asset Group - one is distressed, other focuses on managing GS's loan portfolio risk.

speed boost blaze
 

A friend of mine interned in SSG after sophomore year. It is competitive to get an interview, and if you get an interview you certainly need to know your stuff, but it's not impossible. They take very few undergrads, correct, but that's not because it's the single most prestigious thing under the sun. The simple fact of the matter is that undergrads often have little value to add, and in a group that lean, the logic is "why up the headcount?"

He got the return offer but chose to spend his junior summer in IBD, citing a few reasons. One, the group has been hampered by regulation since the crisis. Its reach is much more limited. He didn't like that the investments were often small, in weird assets, and that exits were limited given how unusual the experience is. I don't personally know anyone who's exited the group so I can't speak to what the exits are like, but the short story is that it isn't as much like working for a distressed hedge fund as it is working for a catch-all group that invests in whatever weird stuff gets by the regulation.

He summered in a solid group (not TMT or FIG) and got the return offer.

SSG at GS is not the golden-plated money machine of the firm. That would be MSI. Those guys ... read about the group online.

I am permanently behind on PMs, it's not personal.
 

I know a guy who summered in GSIP this year in the long-short discipline. He enjoyed it immensely. I thought he was remarkably competent, and I've heard that the screening process there is pretty challenging. There was also a guy out of school one year ahead of me who is at Liberty Harbor ... I personally hold both of those units in higher regard than SSG.

I am permanently behind on PMs, it's not personal.
 

The reason Ken Moelis' son was hired has more to do with establishing transactional points of entry than the prodigal son's technical aptitude. (see: http://dealbook.nytimes.com/2013/08/19/hiring-the-well-connected-isnt-a…)

To give you a better idea of what kind stagering intellectual horsepower is required, look no further than my very good friend, Ivy-educated super-genius Zach, a former Summer Analyst in AmSSG. He was valedictorian of his graduating class in the hardest technical major offered at the college, having produced a spotless transcript. He went on to win a Rhodes Scholarship, and join a fairly prominent VC fund.

An Associate in AmSSG, Holger "the Stud", is probably the greatest panty-dropper alive. Never mind the fact that he was Valedictorian of this ultra-elite Ivy. An accomplished polyglot, Holger not only acts in French plays, but performs breathtaking piano concerts in front of packed auditoriums. He earned nearly every academic prize possible, recording the most A's and A+'s of his graduating class.

There's a good chance none of you are like us, which is why SSG shall continue to evade your grasp.

 

Cool story bro

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 

All very well-known and highly regarded. Depends on what kind of investments you like to look at. They don't take too many summer or FT analysts but have seen some NYU kids that have interned in that group during the year.

It's a chance to be on the buy-side after undergrad so any of the groups would be a good opportunity if interested in the investment style.

 

would anyone be able to elaborate on the nature of work in SSG. I've read the blurb on the GS website, but does anyone know about responsibilities at junior level, lifestyle, where this group tends to take people in the long run, etc? Thanks

 
bbb222:
would anyone be able to elaborate on the nature of work in SSG. I've read the blurb on the GS website, but does anyone know about responsibilities at junior level, lifestyle, where this group tends to take people in the long run, etc? Thanks
I just want to say that I looked at the distressed debt thread already but thanks. And I was bumping it for this question.
 
structure:
Which of the groups do you think more makes money for Goldman? A fees business or prop trading. If you think the former, you don't know how Goldman operates. Even though GS TMT is a wet dream for people on this board, if you have aspirations to start your own hedge fund - GSPS/SSG/GSCI are the way to go.

dude, it was kinda funny the first time around when structure brought it up like three years ago. now you're just flipping an overused concept -- let it rest in peace. wso has turned into fucking amateur night.

 
aworldapart:
structure:
Which of the groups do you think more makes money for Goldman? A fees business or prop trading. If you think the former, you don't know how Goldman operates. Even though GS TMT is a wet dream for people on this board, if you have aspirations to start your own hedge fund - GSPS/SSG/GSCI are the way to go.

dude, it was kinda funny the first time around when structure brought it up like three years ago. now you're just flipping an overused concept -- let it rest in peace. wso has turned into fucking amateur night.

You're kidding right?

 

The question that bbb222 asked a while ago... "would anyone be able to elaborate on the nature of work in SSG. I've read the blurb on the GS website, but does anyone know about responsibilities at junior level, lifestyle, where this group tends to take people in the long run, etc? Thanks"

Thanks!

 

Would you then say, that if I'm interested in distressed investing/value investing/hedge fund/private equity, that the securities division within goldman is the one I should shoot for?

 
Nyctola:
Would you then say, that if I'm interested in distressed investing/value investing/hedge fund/private equity, that the securities division within goldman is the one I should shoot for?

Those are not the same thing at all. If you're interested in private equity, then no of course you shouldn't apply for the Securities division. That's their Sales & Trading division. Apply for jobs at private equity firms.

Honestly, I know many people at Goldman Securities who would kill to be in SSG, and some who are trying to transfer internally there who have spent a few years at the firm. Realistically, you are not going to get a job there by just applying unless you have a top GPA from a top school in a very quantitative major.

Hi, Eric Stratton, rush chairman, damn glad to meet you.
 

I have a friend who is starting FT this summer at GS Speciality Lending Group. I know it's technically within SSG, but it's not the same is it? I think he said it's like mezz lending and stuff...Are they legit?

 

they split it between public and private. How do you return 20% consistently (which they have been doing) by doing mezz/investment grade debt investing? They are a HF, just like all of the distress/credit oriented hedge funds out there who have big private sides now. They do a lot of equities on the public side and look for attractive private side opportunities(inclluding private equity, co-invests, pipes, private debt, etc). It's a great fund because along with GSPS, has been one of the huge profit centers for GS and has produced most of their best people over the last 10-15 years (SSG: Briger, Silver Point guys, Kolatch, McGoldrick, GSPS: Steyer, Mindich, Perry, Lampert, Singh), most of these guys run the best HF's out there right now.

 

They have different buckets / strategies under SSG, some RE some direct lending etc.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

It has been covered extensively.

I did interview at their now defunct Toronto desk. Very impressive crew. Went through four sets of 2 on 1s, technicals were pretty intense. Obviously, lots of questions on fixed income valuation and distressed debt strategies. One of the interviewers made the comment that you'd be surprised how many people would come to interview knowing how "elite" the group is without actually understanding what the group does and why they do so well (sounds like some of the kiddies around here). Also, a lot of kids come in having the basic EV, CAPM, FCF formulas memorized which are completely pointless in SSG, and get dinged within a minute. I am not sure how accurate my assessment is, but the impression I got is that a good chunk of the group lateraled in from other internal successful bond desks.

 

GS SSG encompasses a few different products, so it's tough to nail down which group a person might fall to.

The current group I work for has a number of guys (all directors or above) that spent time in GS SSG, with two from SLG (which is housed underneath the SSG). We essentially do everything the GS SSG does, but on deals that are about 1/4 of the size they do. Also, we don't is equity control positions, while SSG will. Since we're a smaller office, we don't have the resources to run the ship if one of our portfolio ships fell down, so liquidation analysis is a major sticking point for us.

GS SSG can invest up and down the cap structure, but primarily want credit and/or credit-like equity instruments with returns north of 20%. The cool thing about this strategy is that you can pretty much do any deal for in any industry, so there is a lot to learn. I've looked at growth credit and equity, VC investments, royalties, and asset based lending deals.

I plan on applying there after business school... I'm hoping my MDs + an MBA from Wharton will help me get in.

 

Almost impossible to get into ESSG/SSG at Goldman because they only take the best people from top schools and usually look for someone with experience in structured finance or PE. But if you get in, you're sorted! You'll work with the smartest people in the industry

 

They may ask you about a Special Situation you've encountered in life and what you did to overcome it. Maybe if it's a group interview they may ask everyone to join in, kind of like a group session. Everyone will be super helpful and will show much support if you open up--as any support structure should for those encountering Special Situations in their life. I think hugging it out is fairly customary at the end of the process.

 

Special Situations at GS is by far the most elite and notoriously hard group to get in! The team is relatively small and it is an internal hedge fund and principal investing vehicle of Goldman as they invest Goldman's own money. I guess that explains why you can't find much information about the team or the deals online, it's very exclusive. They are very picky about candidates and look for a specific skills set usually quite technical with investment mindset.

A close friend of mine works in SSG at GS and they work insane hours but he said the people in the team are extremely smart and the team dynamic is good. If you make it to the team you are most likely insanely smart because less than 1% of applicants succeed in the final round (was told by an MD in the team). Best of luck!

 

Received an email 2+ months later from an SSG recruiter saying she was interested in having a phone call. Any and all useful/relevant prep resources are much appreciated for those inclined to share.

Will circle back after the call this week.

 

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