Most Attractive Credit HF Seats Today?
Have been speaking to some friends across the street and consensus is that public distressed/opportunistic credit seats are not what they were 5+ years ago when we left from banking and PE. Founders have gotten older and shifted towards privates, CLOs, and other fee generating products while analysts are stuck in low-cap seats with less optionality and stricter coverage/risk limits.
Any thoughts on the attractive credit HF seats today? Am increasingly hearing multistrats at senior analyst level (especially with big guarantees) but also curious how more junior analysts are thinking about the space today.
Based on the most helpful WSO content, here’s what you need to know about attractive credit hedge fund (HF) seats today:
Public Distressed/Opportunistic Credit: The consensus aligns with your observation—public distressed and opportunistic credit seats are not as lucrative or dynamic as they were 5+ years ago. Many founders have shifted focus toward private credit, CLOs, and other fee-generating strategies, leaving analysts in less flexible roles with stricter risk limits and lower-cap opportunities.
Multistrats: Multistrategy funds are increasingly attractive, especially for senior analysts. These funds often offer competitive compensation packages, including significant guarantees, and provide exposure to diverse strategies. They are seen as a strong option for those looking to maximize earnings and career growth.
Junior Analyst Perspective: For junior analysts, the space remains competitive but offers opportunities in medium-sized asset managers and large-scale funds. Leveraged credit, being a multi-trillion-dollar asset class, ensures a steady flow of opportunities due to constant refinancing needs and balance sheet issues. However, the number of seats is limited, making it crucial to stand out during recruitment.
Top Credit HF Names: Some of the large legacy liquid credit funds still considered good seats include Brigade, Marathon, Davidson Kempner, Varde, King Street, CarVal, Oak Hill Advisors, Beachpoint, SVP, Sculptor, and Monarch. While some of these firms have faced challenges, they remain relevant players in the credit HF space.
Lifestyle and Stability: Credit hedge funds, particularly those tied to CLO issuance and leveraged finance, are known for offering a more lifestyle-oriented work environment compared to other high finance roles. Job security is relatively stable due to the longer-term capital base and lower-risk nature of the underlying products.
If you're exploring opportunities, consider the trade-offs between compensation, lifestyle, and growth potential, and focus on funds that align with your career goals and risk appetite.
Sources: Credit Hedge Fund opportunities, Which of the large liquid distressed managers are still good seats?, Q&A: Currently at a Credit Hedge Fund, Credit Hedge Fund opportunities
Bump
Bump
Bump
Bump
Bump
Knighthead
Sure they’ll pay you but they’re all psycho. Tough place to work.
lol just peeked at their linkedins - they all look terrifying to work with lmao
Bump
bump
Bump
Bump
Diameter, knighthead, anchorage, bracebridge, castleknight
Anchorage?? pretty sure they just do CLOs now
They still have a smaller distressed drawdown funds business and are involved in some pretty spicy stuff there. But I think this post was meant to be a joke given inclusion of some names here.
you have no idea what youre talking about
Does anyone have insight into Stonehill?
Following
the most attractive credit seats today are ones that arent distressed only
Probably Silver Point
Redwood?
Is it true that the space has completely degraded? Or more the situation that there’s been a weeding out process that has seen only better shops survive? I’m interviewing for a distressed fund on the west coast (that does HY too) that has done pretty well and am a little surprised by the sentiment in OP’s post. Is this not a good place to be for a career?
How big is the fund?
Mid sized, multiple B
Praesentium rerum reprehenderit aut excepturi. Veritatis necessitatibus nisi laborum repudiandae qui praesentium aut. Reiciendis rerum est sunt voluptas. Assumenda provident pariatur vitae ab architecto. Omnis ut suscipit deleniti omnis est. Quibusdam consectetur voluptas beatae est consectetur et. Sint eligendi veniam optio. Voluptates nesciunt aut et esse repudiandae deserunt.
Nulla aut magni id architecto velit necessitatibus cumque. Harum reprehenderit sed magnam optio consequatur temporibus accusamus. Adipisci aliquam inventore adipisci temporibus et fuga quos. Amet quas quo ut officiis sunt.
Temporibus quia voluptatibus eos praesentium. Exercitationem quod consequatur ut tenetur. Explicabo amet quos rerum maiores ducimus labore. Eveniet deleniti quo quo enim nulla. Facere consequatur natus quia accusantium minus repellendus. Alias sapiente architecto accusantium quia ullam perferendis voluptas.
Autem omnis atque ut nulla. Earum perspiciatis et delectus consequuntur. Debitis aut id quis iusto id explicabo. Modi vel est rerum voluptatem. Aut perferendis eligendi expedita dolore atque perspiciatis voluptatibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Doloribus sunt et repellendus perferendis tempore est magni. Sit neque illum asperiores eos explicabo ducimus ad non.