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well the thing is I remember hearing that BX restructuring candidates are top candidates at the LBO megafunds as well, so the fact they chose the HF side (and many of these like Baupost/Tiger aren't even distressed focused) is an interesting indicator of where the top candidates are going.

Remember hearing about the commoditization of PE (as seen via the IPOs, expansion of the top funds into multiple lines) causing candidates to go into HF which are seen as more nimble

 

BX restructuring analysts were more attracted to the PE side before 2008 -- Apollo, TPG, etc. HF hours are better, less process / team oriented, more intellectually stimulating, high y/e bonus vs. carry. PE has been a tough place to be for the past few years - not the same world of 2003 - 2007. Many analysts lean towards distressed (Centerbridge / Baupost / GSO) but others are looking to get exposure to event driven / deep value / macro strategies. BX restructuring leaves the door open to most funds regardless of strategy. BX M&A placement is similar but seems like placement is weighted heavier towards PE than HF's.

June 2011 class placement for restructuring: BX PE (2), Eton Park (1), Centerbridge (1), Taconic (1), Apex PE (1), Oak Hill (1), Anchorage (1)

 

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