Goldman Sachs Merchant Banking and SSG
Hey guys,
Very hard to find information on Goldman Sachs' buyside operations.
From what I understand Merchant Banking and SSG have been merged into one entity now referred to as Merchant Banking.
Let me know if my findings are correct:
From what I understand, the Merchant Banking team acts like a PE firm (using Goldman's balance sheet as opposed to LPs) that also does mezzanine financing and distressed debt and real estate.
The SSG group acts like a hedge fund and invests in distressed debt, start-ups, event driven catalyst equities etc
Not sure how Goldman Sachs Investment Partners fits into the equation however they have been referred to as Goldman's hedge fund so I'm assuming they are mainly a l/s fund???
Any clarification on the three divisions above would be helpful as well as some information on recruiting, skills required and exit opps.
Could you move from a small l/s fund to Merchant Banking or GSIP? Is it worth it? What kind of skills would you need? Is there room to learn your missing knowledge on the job? (for instance if you come from l/s equity value fund, learning distressed investing)
Thank you for your time.
Bump
I’ve only heard the comp sucks
Really? thats sounds counter intuitive when its seen as more prestigious/harder to get into than M&A
By who? College kids? It’s not. Maybe back in the day, but not the group as it is now. Still not a bad opportunity though
?? Who said that
I've also seen quite a few Goldman M&A guys move into Merchant Banking/SSG after a couple of years in M&A on linkedin
MBD is the equivalent of a buyside fund with multiple strategies. They do PE, infra/renewables, private credit, direct lending, etc. mostly in the middle market. You are silo’d in a specific strategy.
It’s a buyside role but not some crazy multi-strat HF with 5 people investing in everything under the sun and printing money. Solid buyside gig, but since its under the umbrella of a BB its more hierarchical, and its harder to get meaningful carry. They hire internally since its easy and you have a steady supply of solid candidates.
Thanks for your response.
2 questions:
How is it viewed by Mega funds and Top tier HFs for recruiting?
Do such multi-strat Elite HFs exist where as an analyst you get experience across all areas of investing without being silo'd?
SSG is an "exit op" for IB analysts, i.e. they mostly hire associates - if they hire analysts its probably a tiny class, so hard to extrapolate. If you join as an analyst I imagine it positions you well for whatever silo you're in, same way if you join any other MM+ buyside fund out of undergrad. I'm sure a quick LinkedIn search will clarify this.
Everything exists in finance if you look hard enough, and if you're capable the opportunities will present themselves. I think people on WSO underestimate how much it depends on you vs. your pedigree. Coatue isn't just going to hire some kid because his resume says Harvard + GS + Apollo. He'll get an interview, but there's like 1 seat every x years at these funds.
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