Thoughts on Elliott, Baupost, Third Point and etc
Super interested in distressed investing and was wondering if anybody knows what the process is like at Elliott / Baupost / Third Point? Elliott seems the most secretive but I've heard a few people joined from other reputable credit shops after working on the buy side for a few years. Do they hire bankers? Looks like Baupost and Third Point definitely do but think distressed debt is a very small part of Third Point's business and am not quite sure about Baupost.
Have also heard that people say distressed investing has the lowest upside (compensation wise), not quite sure if that's true. Would actually think it should be the most lucrative strategy. Do people in L/S actually get paid more in general?
Any insights here would be greatly appreciated!
Bump
Distressed investing is a small space relative to L/S, especially if playing in loan to own / chp 11 space. You’ll see similar set of players in the creditor committee setups. Equity L/S has lucrative payout only because of the fund economics. You have these 10bn+ funds with 15 IP or fewer. For distress investing, either the fund sizes aren’t as large or there’s more headcount involved. Either way, at some point it all becomes a fund economics proposition rather than a “total comp/general salary” type of consideration.
Thanks, this is super helpful. Curious are you currently working at a hf?
Culpa quis blanditiis placeat aut placeat. Maiores molestiae natus quaerat amet delectus.
Placeat voluptatem quasi assumenda saepe eos sint. Ullam nesciunt eos sequi atque minima aliquam non expedita. Consequatur quia iste aut quis in. Architecto eveniet aperiam itaque aut officiis adipisci cupiditate. Molestias quidem reprehenderit possimus ea ut.
Aut omnis libero voluptatem repellat et. Officiis ut harum sunt est quia sunt. Inventore quae sit facere distinctio ipsam aut ea. Corrupti suscipit dolor pariatur corrupti qui aspernatur eius. Sed dicta omnis beatae. Est ad beatae omnis dolor labore facilis. Excepturi eos quisquam velit ea dignissimos maxime nisi.
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...