Breaking down distressed funds by strategy
Finishing updating this leaving as the three buckets below.
Setting up a topic to talk about distressed / capital solutions / special situations. I’d love to bucket names on core types as it can be a bit murky at times and could help with recruiting in the future as a lot of funds do varying things. Ultimately this isn’t supposed to say this fund only does X, but moreso engage discussion as people make choices for recruiting.
I’m not 100p clear on some of this as well so feel free to correct me or suggest additions or subtractions. I’m going off primary focus (for example most of the private distressed lending buckets have secondary allocations).
Primarily private distressed lending / minority equity
- Ares Special Ops
- Atlantic Park
- HPS
- MGG
- Blue Torch
- Apollo Hybrid Value
- Owl Rock Opportunistic
- Carlyle Opportunistic
- Brookfield special investments (equity lean)
- Sixth Street Strategic Capital (equity lean)
- Clearlake Opportunities
- Blackstone TacOpps (equity lean)
- Blackrock Opportunistic
- Goldman Hybrid Capital
- Golub Opportunistic
- Victory Park
- Fortress Private Credit
Loan to own / control oriented shops / 363 players
- Apollo PE
- SVPGlobal (has a HF as well)
- Oaktree Special Situations
- KPS
- Stellex
- Monomoy
- Middleground
- Cerberus PE
- Lone Star
- Centerbridge PE
- Clearlake
- HIG PE
- Ares corporate PE
- Wynnchurch
- Gamut
- Brookfield PE
- Searchlight
- Platinum
- American Industrial Partners
Funds that play in secondary distressed (note some have illiquids buckets as well for distressed lending):
- Goldentree
- Brigade
- Beach Point
- Diameter
- Redwood
- Blackrock Credit Alpha
- Varde
- PIMCO
- Nut tree
- Canyon
- Apollo credit hedge fund
- Caspian
- MidOcean
- Sound Point
- Oak Hill Advisors
- Aristeia
- White box
- MM shops
- Garda
- Aurelius
- Oaktree flagship
- Silverpoint
- Attestor
- Centerbridge
- Angelo Gordon
- Glendon
- Contrarian
- Taconic
- Sixth Street Fundamental Strategies
- Sculptor credit opps
- Fidera
- Bain Distressed
- CarVal
- Castlelake
- CQS
- AS BirchGrove
- Marathon Asset Management
- Cross Ocean
- H/2
- Fortress
- Marble gate
- MHR
- KKR Opportunities
- Monarch
- Solus
- Kennedy Lewis
- Farmstead
- Arbour Lane
- Eos
- Ellington Credit OppS
- Third Point
- Senator
- Baupost
- Elliott (including twice)
- Luxor
- HG Vora
- Davidson Kempner (credit focus)
- Farrallon
- Appaloosa
- HBK
- Empyrean
- Q Investments
- Bardin Hill
- Abrams
- Owl creek
- Antara
- King Street
Need to drop in
- Fitzwalter
- Atalaya
- Arena
- Avenue
- Siguler Gulf
Missing Nancy Pelosi in event driven and SBF in loan to own
Pls fix.
HIG PE – Pretty sure they do more deep value/carveouts as opposed to actual distressed? Their core LMM/MM strategy seems to be to deploy quite a bit of capital into a fuck ton of deals very very fast. Extremely sweaty, but impressive.
RE: MidOcean, do you mean the MM PE firm? I don’t think they do turnaround/distressed either. They botched a make up company and the execution there was objectively awful. Would be shocked if they had any sort of turnaround/distressed focus given they fucked up so much 101 stuff. The advisors they brought in too sucked.
Turnaround associated with controlling the company and doing what needs to be done operationally to make the company successful.
Distressed implies you don't need control per se. You might attempt to push the co around with a specific type of position you take, but you might not be in control of day to day operations.
In other words, turnaround is more of an "equity" type approach with a focus on improving the company itself vs the approach of typical distressed investors who are more focussed on getting recovery on their debt?
In that case, is the main difference between deep value and turnaround that deep value "targets" aren't actually distressed, but oftentimes rather just stressed with secular headwinds (i.e. coal companies, newspaper publishers, paper and packaging, etc)?
Thanks for the response - just trying to clear up the terminology here LOL
Correct but there’s a ton of overlap too which is what some posters below were getting at.
For example, we make loans to distressed companies and mandate that they use our consulting services. We are in a position where we can quickly squeeze cash out of them if they fall behind too.
If things go badly, we gain control inexpensively and made extra $ along the way while getting familiar with the asset.
I tell people we are a turnaround firm, but not sure the above really falls into any one bucket cleanly.
Every firm is quite different too and you'll see mandates that are very broad pitched to pensions. You can see these if you look up the presentations.
Bro when Kennedy Lewis first opened one of the partners sugar babied my gf at the time (total sloot, insanely hot). Devastated at the time but now I wonder if the guy would sling me a sweet gig?
How exactly would that conversation go in your head?
There's many funds on here that do all flavors / multi strategy credit offerings. Bucketing into one or the other doesn't really make much sense at all as much as the intern or 1st year RX analyst wants to force a square into a round hole.