Thoughts on Blackstone and/or Apollo Credit
Looking for insight onto how the various credit groups at the megafunds are structured, most specifically interested on Blackstone and Apollo, but views on KKR and others would be helpful as well.
- From what I've gathered, some of Blackstone's credit groups include liquid credit strategies (LCS) (seems to focused on the mutual fund type business), Performing Credit group (private credit focused?) and Opportunistic Credit group (higher yielding stuff which probably also includes stressed/distressed?)
- Apollo: on the corp credit side, do they just have one research group that invests across performing liquid credit, stressed/distressed, special sits and private credit?
Thoughts on junior comp / culture / working hours / general also much appreciated. Is it similar to PE at those shops?
Thanks
Bump, very curious about the often mentioned yet vaguely defined "Apollo HF"
Had a couple interviews with KKR's public credit team, seems like analysts cover ~40 names, 75% loans, 25% HY bonds, a sleeve for opportunistic as well where they bought solid companies trading well below par at the onset of covid I think.
Blackstone LCS is mostly a CLO business. Performing Credit is direct lending/mezz combined. Opportunistic Credit is not what you think it is - it’s mostly clubbed MM loans (L+500-600) and lots of overlap with the CLO biz. No stressed/distressed at Blackstone - that biz folded with Jason New’s departure
Blackstone still has its special situations/distressed strategy which invests across cap stack (from senior secured to common)
source: I am on the team
Are you talking about the BAAM team
any chance you can pm me?
can you PM me?
Based answer.
There definitely is a distressed credit side at Blackstone GSO. I know they hired a distressed PM from PIMCO 1-2 years ago
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bump - also interested
Doesn’t oneglia’s team do stressed/distressed?
Yes he does
Yes in title but not in practice. That group is doing par loans now
For what its worth, Robert Zable is a tool. Blackstone prints a lot of new issue because of their name and dumb AAA guys, but their performance on a relative basis is garbage.
The Apollo hedge fund team led by Zito oversees all the other credit investing there so it’s just a sharper, smarter group with more diverse investing mandate than what you find at BX or KKR both of which are purely asset gatherers in credit.
Pretty sure the analysts at Apollo that work in credit (liquid) cover everything, from CLO to long only to HF? I don't think there are "dedicated" credit HF analysts. Every analyst looks at a sector, and if it's a good idea, gets put into the HF which is ultimately run by Zito. Someone correct me if I am wrong though
That was true once but changed in the last year. There are now sector analysts who cover industries in addition to “product teams” which focus on liquid and illiquid opportunistic (distressed, equity, special sits, cap arb, SPACs, etc).
is this still the case? apollo has gathered more assets in the past few years than kkr or bx
Interning on one of these groups on the liquid/performing side -- compensation for juniors is the same as the rest of firm, working hours expected to be 7-7/8
Couple questions on Apollo Credit Associate pay for their DL / private credit group:
- On comp, do they pay lights out relative to market like their PE side? So for example, if average Comp at MF PE is $300-350ish at Aso 1, Apollo tends to pay $400+. Similarly in PC, if MFPC comp is ~$300, does Apollo pay significantly higher than this?
- Does the PC team typically look at hairier credits like a HPS? That's what their PE team is known for so wondering whether that transfers over to the credit side (so maybe L+600-800 versus L+400)
- What are the hours like on the credit side? Assuming not as bad as the equity team
bump
Following
Following
following
Apollo and it’s not close. Bx = clo’s and mass market private credit.
Anyone have any info on Apollo's global corporate credit group? Trying to get a sense of strategy and nature of work (performing credit vs opportunistic / distressed). Any info on comp at the associate / principal level given lower return target would also be appreciated.
doesnt blackstone have tactical ops?
Wouldn't consider them credit-focused, they mostly do minority/pref equity and a variety of other structures that don't neatly fit into other BX verticals.
Would look at Ares if you want interesting credit deals
Apollo Global Corporate Credit essentially split itself into 2-3 strategies: (i) Large Cap Direct Lending, (ii) CLO alike investing (HY, LL new issuances), (iii) opportunistic type investing for dislocated credit. Team's very lean with a lot of AUM, strategy wise is very fundamental driven yet flexible. Not sure about US but juniors in Europe get the opportunity to look at multi-strategies most of the time with bit of % depending on your previous experiences.
Interested in learning more about Apollo's Asset Backed Finance team. Any info on hours, culture, and comp?
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