Hedge Funds with illiquid buckets (Special Situations/Structured Equity)

Based on the most helpful WSO content, there are several hedge funds and investment firms that operate with dedicated illiquid pockets or teams separate from their liquid strategies. Here are some notable examples:

1. Oaktree Capital:

   • Oaktree's Special Situations Group focuses on distressed-for-control or control buyouts, particularly in middle-market situations. This is distinct from their Opportunities fund, which has a broader public distressed and special situations mandate.

2. Sixth Street Partners:

   • Originally spun out from TPG, Sixth Street operates across asset classes and has a history of investing in illiquid opportunities. Their special situations team is known for its flexibility and operates semi-independently.

3. Bain Credit:

   • Bain Credit, formerly Sankaty Advisors, has a dedicated distressed and special situations group. They work across the capital structure and asset classes, often focusing on illiquid opportunities.

4. PIMCO:

   • PIMCO has been expanding its special situations capabilities, leveraging its massive size and market data. They have been involved in notable illiquid transactions, such as the Incora deal.

5. Apollo Global Management:

   • Apollo's Hybrid Value Fund and other credit-focused strategies often include illiquid investments, separate from their liquid credit teams.

6. Blackstone Tactical Opportunities (TacOpps):

   • TacOpps focuses on minority equity deals and other special situations, often involving illiquid investments.

7. Brookfield Special Investments:

   • Brookfield has a dedicated team for special situations, focusing on illiquid and opportunistic investments.

8. Angelo Gordon:

   • Known for its aggressive distressed strategies, Angelo Gordon often operates with a focus on illiquid assets.

9. Lone Star and Värde Partners:

   • These funds specialize in buying non-traded financial assets at a discount to NAV, which often involves illiquid investments.

10. Elliott Management:

    • While primarily known for activism, Elliott also engages in distressed and special situations, including illiquid opportunities.

These funds typically maintain separate teams or structures for their illiquid strategies to ensure focus and expertise in managing these complex investments.

Sources: Special Situations Investing (BX, Apollo, Ares), https://www.wallstreetoasis.com/forum/hedge-fund/the-future-of-special-situations-distressed?customgpt=1, Current Thoughts on Opportunistic/Special Sits Groups (Oaktree Special Sits, BX TacOpps, Apollo Hybrid Value Fund, Brookfield Special Investments, KKR Special Sits), Q&A: Currently at a Credit Hedge Fund, PE Investment Activity Amidst Spiraling Markets