Good credit funds?
Just starting out here and I'm thinking about recruiting for credit funds next year. What are some of the leading firms, and why do people think they're great? I've heard these names a lot but don't know much about them... was originally sold on private equity and so don't know much about what makes each credit fund special. What do they tell LPs about their "secret sauce" and how true is it?
- Anchorage Capital Group
- Apollo Global Management
- Bain Capital Credit
- Canyon Partners
- CQS
- Davidson Kempner
- D. E. Shaw
- Elliott Management
- GSO / Blackstone
- HPS Investment Partners
- King Street
- Oak Hill
- Oaktree Capital Group
- Sculptor / Och-Ziff
- York Capital Management
Mostly they are excellent at structuring, finding the right spot in the capital stack and going with a fine-tooth comb through the intricacies of each particular deal point. Many of the best credit investors have law degrees. A lot of the big players are chasing their tail a bit with a limited amount of high-yielding deals. Oaktree by definition is participating on most every distressed deal due to their size and limited amount of large double-digit yielding paper. Elliott is mostly an activist equity shop now (again very hard to scale credit investments). Your list is mostly excellent funds but the list of true credit funds is dwindling.
Ares