Latest views on credit shops after being acquired (HPS, Angelo Gordon, Marathon, Apollo)
A number of reputable credit platforms have been rolled up by the Megafunds in the last couple of years (Blackrock > HPS, TPG > Angelo Gordon, CVC > Marathon, Apollo > Irradiant). I'm curious how these platforms are being integrated into the larger companies, any changes in culture, comp structure, etc. Some things I've heard:
- HPS investment team has been told that they'll continue to operate independent of the broader Blackrock platform... for now.
- A number of Angelo Gordon and Marathon people have left / been consolidated and pushed out
- Apollo has just absorbed the Irradiant CLOs and its mostly legacy Apollo credit folks that remain, although they've been focusing a lot on private IG deals.
Anyone with experience at these shops care to shed some light?
Blackrock/HPS: It appears that HPS is managing the combined platform with some exits of legacy BlackRock higher ups.
TPG/Angelo: My understanding was this was a bit more plug and play given TPG did not have a credit business post Sixth Street.
CVC/Marathon: I am not as close to this but feels like a more likely heavy integration.
Apollo/Irradiant: Atleast on the CLO side this was a fairly direct integration, a number of people left in anticipation of that.
I think understanding the buyer/seller dynamics probably is informative for how these will all play out.
Mostly depend on ability to raise money. HPS is the credit product that remains; Angelo is the product itself; marathon who knows - some products there will have significant issues raising money / break even on cost structure/ scaling Aum / has overlap with existing CVC Products but worse performances, so probably will see many changes. APO standard clo acquisition, roll up Aum and cut HC
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