Best Credit Funds That Hire out of Undergrad
What credit funds higher out of undergrad? How would you think about a credit fund vs special sits investing group at a BB?
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Silver Point, GSO, Bain Capital Credit, Apollo all come to mind
Apollo hires out of undergrad?
Can confirm yes
how good of a shop is Bain Capital Credit at the analyst level?
Nobody will "higher" you with that poor attention to detail lol
Nobody wants to hire some twerpy grammar Nazi either..
Also if the credit fund is one of the ones mentioned above or generally reputable, 100% would choose that over BB spec sits
Depends what type of credit fund you’re looking at, funds that invest across the cap structure doing direct lending/mezz/ or more CLO managers? If it’s the former, yes several that recruit from undergrad such as Atalaya Capital Management, Bain Capital Credit, GSO Capital Partners, Maranon Capital, Silver Point Capital, KKR Credit. If it’s the latter, you have shops like Octagon Credit, Barings, Guggenheim, Jefferies Finance, and Oak Hill advisors. Both are great options, definitely research both if you are interested in the credit space. A lot of CLO managers also do direct lending as well so keep that in mind.
Some credit shops hiring undergrads (with comments):
Thanks so much for your response. I am rising junior, so I am currently recruiting for SA 2020. Does it make sense to do RX for 2 years and then switch or to try to straight into the buyside? Is it going to be easier to recruit funds FT if i do RX for a summer and don't like it or would like to avoid the FT 2 year path than to recruit buyside SA. Thank you so much for your detailed comments-really helpful.
If you are not from Wharton/Harvard, 2yrs EB RX and then move to distressed credit fund would be the most possible path. I did a summer at EB RX then join a distressed credit HF (not listed above but a well-known one) after graduation. This path would not be easy because 1) some credit shops I listed above prefer to convert their SAs for FT instead of hiring from EB RX and 2) you have to be very outstanding in your EB RX class. I remember most of my peers in my SA class would like to join HFs (even the relatively unknown ones) instead of staying there for 2~3 yrs.
I think part of the benefit of doing RX IB first is that you get a better understanding of the different styles/types of credit funds. Not just public vs. private or IG vs. HY vs. distressed credit but a lot of the funds have very different (and sometimes niche) investing styles. It helps to spend some time working with these guys so you can make a more informed decision before potentially committing to something. You'll probably also have access to more/better opportunities after an IB stint and having some experience. Also it's very possible to move to the buyside after 12-18 months instead of finishing the 2 years if you hate it.
Fantastic post, wish i could give another SB. Adding to what you've mentioned i find that GS SSG is really not what most people on this site think it is. Don't get me wrong, it's a fantastic group, but it is more so Special Situations PE rather than pure play distressed investing. There are 6 or 7 sub groups under SSG that do everything from Hard Assets (Real Estate and collateralized securities) to renewable energy to growth equity and specialty lending/Mezz. the Multi Strategy Investing group does some event driven/distressed work. Overall, It is a very diverse group that gets involved in a lot of situations. GS Credit Alternatives/Liberty Harbor on the other hand is split between public high-yield and stressed investing and private credit direct lending/mezz. Also GS Merchant Banking has a great private credit group. You are spot on about the other firms!
On GS Credit Alternatives, it was one of two interviews I've ever gotten got via applying on Linkedin lol. Was a good group of guys and interview was 50/50 IB-type technicals and behaviorals. Got to the superday and got dinged on the case (case was pretty simply debt paydown analysis based on provided CIM).
This was while I was in banking btw so not out of undergrad but worth imparting regardless.
Can you or someone else expand on this:
Is KKR SSG still good? Why isn't Silver Point as good as its reputation? Is Aurelius actually viewed as a good credit shop - or is it more a litigation firm?
fine
For your second question, Credit fund v.s. Special Sits under BB. I think the only Special Sits under BB still hire 1st year analyst in the US is GS SSG. The problem is that there are several sub-groups under GS SSG, and some of them (alternative energy or lender financing) is a little bit boring than the opportunities I listed above. Dodd-Frank fundamentally changed the way BB running their proprietary investing platforms. Due to regulatory scrutinizing and concerns on reputational risk, there are so many exotic strategies and hairy situations which BB Special Sits couldn't get involved in credit space.
I worked with GS ASSG and GS ESSG on a white-knight situation and an in-court restructuring, respectively. One thing I would like to point out is that these two groups are very opportunistic on their mandates. Analysts would have exposures on various strategies like event-driven and fundamental L/S, NPL, cap structure arb, vanilla HY, distressed credit, direct lending, and growth equity, etc. The good thing about flexible mandates is that you would learn a lot on different strategies. But meanwhile, you would not be an expert on any of these strategies.
So I guess the bottom line is, if you are dedicated to be a "credit guy," Bain Cap Credit/Silverpoint/GSO/Apollo would give you better exposure and training than GS SSG-SLG/PCI.
I’ll add Antares to the lists that have been provided.
BUMP. Maybe oak hill, oaktree occasionally, bx, kkr, silver pt, dk, Anchorage I have all seen tske out of UG
Most of those aren't worth pursuing. Better to do IB or PE then transition, unless you get DK or SP
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