London Restructuring

TLDR: PJT, HL and other boutiques are actually better for Multi Managers, definitely better for anything credit related, SM is random so other factors matter more. MFPE Vanilla Buyout exits are lacklustre compared to US due to small analyst class with strongest people wanting to go the credit route, people not exiting as frequently (and those who do go predominantly credit), and maybe only the lesser quality candidates recruiting for buyout as the top go for ss/dd

Long read: there are a lot of factors to consider when looking at the exits of boutiques (specifically rx) in London. I'll be referring to PJT and HL only as they are the only places worth it for RX specifically (more so PJT as most of my good friends are from there). To clarify I never worked at either PJT or HL. Firstly, lets break down what the different funds look for in a candidate and how they would rank here:

Multi Manager Hedge Funds:

Hiring here is not tailored at all and anyone could get a shot at interviewing provided they are interested and work in a relatively decent area. Throughout the time I worked at one of the big 4, I worked with people from all types of backgrounds (PE, other HFs, random LO's, RX, M&A, ER, even consulting, you name it). However, in 2 pods I worked at which were the most successful in the entire office on a regional basis, the lead PMs both explicitly stated that they have a very strong preference for people at PJT and/ or one of the 2 leading teams at Roths (HC and Consumer). They both agreed that the technical skillset and responsibilities that the people at these places have are above the rest, and bus dev should prioritise them if anyone from there is interested. Have seen co workers from PJT and or HL RX here. Any good bank wont hold you back if you want a MM. good boutiques will actually improve your chances (specifically pjt and roths hc/consumer)

Single Manager Hedge Funds (L/S Equity): 

Hiring here is even more random than Multi Managers. I know many sr partners at all the top funds (TCI, Lansdowne, Egerton, AKO, Pelham, multi strats like Farallon etc), and the issue with these funds is a seat opens up every 2-5 years. Hiring is very random - they prefer hiring people from good banks (which includes PJT & co), from other hedge funds, or on the off chance someone from LO or a PE wild card. What's much more important is if you can get referred to them through word of mouth/mutual connection. Pretty much unfair to generalise how someone ends up at one of these places as its more luck than anything

Special Sits/Distressed/Credit 

As expected, exits here for PJT are top notch. They include multiple people sent to Ares SS and PC, Apollo buyout, Sona, Oaktree global opps, Mudrick, Centerbridge, Angelo Gordon, SVP, Searchlight, BCC SS, Blantyre, Tresidor, CQS, Algebris, EQT Credit, KKR Credit, Triton Debt etc. I'm not entirely sure about HL RX as I dont know a ton from there, but I assume the exits are also great but a notch below PJT. I have a close friend from there who exited to one of the top 3 PC shops in Europe. When any fund which has a credit type mandate is hiring (specially distressed element), they are guaranteed to look at PJT then HL first (At least that's what we do and all my friends at similar type funds)

Vanilla Buyout:

Here is where the disconnect is. Exits from PJT include KKR buyout, Couple to KSL & Partners Group, Stellex (tbh could put them in dd), PSG, Norvestor, ASP, Blackrock, GIC. Good funds (some great), but not like the US team where everyone that doesn't go the HF route ends up at MFPE. You can break down the reasons to the following:

1) Majority if not all people who go to PJT and HL have a genuine interest in Credit/Distressed, which makes them lean heavily towards that whilst exiting (hence why the credit exits are great. I haven't met anyone who went to one of these places just for exits and isnt interested in credit, especially that most of these people probably had other options given how hard the recruiting process is for PJT compared to the BBs. This could also explain that maybe those who exit to vanilla buyout instead of credit style investing arent the "cream of the top", hence not ending up at mfpe. 

2) PJTs analyst class is a lot smaller than the BBs. For reference, PJT office in London has about 140 people in FO roles from all seniority levels (from companies house). HL has it at around 60 but I think that's too low. In any case, PJT number for all employees is probably the size of 2/3 BBs analyst class across Europe. So there is just a lot less space for lots of exits (so less data points), and if someone exits they will most likely target credit side of things. 

3) PJT in the US has institutionalised exits due to the 2 and out programme. Everyone in the RSSG team knows that they have to leave after 2 years, prompting the people that really want to exit to aim to go there. Add that to the high hiring standard and difficult interviews, you get people who are very technically sound and are laser focused on exiting. Coupled with excellent deal flow and MDs that pull for you, its a great mix. Contrast that with PJT in London which isn't 2 and out (they actually want to promote people). I also noticed that a lot of people who go to PJT might want to stay in banking over the long term, which reduces the amount of people who want to exit

4) A lot of the MFPE prefer people working on deals that are relatively large. HL predominantly focuses on the MM so isnt a great fit there. PJTs M&A Franchise is still growing, deals are usually large but deal flow isn't as consistent as the RX team. However, having spoken to a lot of my mates from MFPE about this, we all agreed that no one really cares about which bank you went to as long as its decent. Once you are infront of the investment team, its a level playing ground for all (whether GS, Greenhill, PJT, who cares). 

5) HHs are the gatekeepers here for some processes, but you can usually bypass them if they wont let you into the process by emailing the fund directly etc. When we spoke with Kea, Blackwood etc, they all had nothing but praise for PJT guys so I would highly doubt that they wouldn't let you into these processes (especially that they manage the Apollo/KKR relationship and sent quite a few from PJT there