Apr 01, 2024

Vanilla DL to Special Sits

How common would it be to go from vanilla DL at one of the blue chip bigger shops (Carlyle, Blue Owl, etc.) working on mostly Sponsor but with some non-sponsor deals. To a specialty lending (Ares, Sixth Street, HPS, Apollo) special situations type seat?

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Doable at the junior levels as a lateral, especially if you come from an IBD background.   Difficult if you are past VP unless you are willing to take a step back rank wise.  I'd also separate HPS out of here given their flagship mezz / junior credit product probably would be a bit more willing to look at this background vs. the special situations groups at Apollo, Ares, Sixth Street.   

 Also this would differ between the "specialty lending" and "special situations" groups at many of these places which mean different things (special situations being incrementally harder).    

 

When you say HPS more willing to look at this background, which are you referencing? Do you mean that the others listed are typically only looking at the IBD restructuring backgrounds with a typical linear path to SS?

Also would you say HPS is more mezz lending vs the others who are cross capital stack special sits? Thanks

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