Special sits London

To break into a special situations group in London and position yourself for a future role at a hedge fund focused on distressed debt or activist strategies, here’s what you should consider:

1. Target Banks/Groups:

   • Based on the most helpful WSO content, the top banks/groups for distressed debt and special situations in London include:
     • Restructuring-focused groups: Blackstone (BX), Houlihan Lokey (HL), Moelis, Evercore, and Lazard.
     • Leveraged Finance and Financial Sponsors: JP Morgan LevFin, Goldman Sachs LevFin, Morgan Stanley LevFin, and UBS LevFin.
     • Boutiques with strong RX practices: Rothschild, PJT Partners (Park Hill), and Perella Weinberg Partners (PWP).
   • These groups are known for their strong deal flow and exposure to distressed and special situations, which are critical for transitioning to a hedge fund.

2. Networking:

   • Since you’re coming from a Tier 2 EB and a non-target school, networking will be crucial. Focus on:
     • Alumni from your current bank or school who are now in London-based RX or special sits groups.
     • Attending industry events, conferences, and meetups in London to build connections.
     • Reaching out to professionals on LinkedIn with personalized messages highlighting your interest in special situations and your relevant experience.

3. Positioning Yourself:

   • Highlight your current experience at a Tier 2 EB, emphasizing any exposure to restructuring, leveraged finance, or distressed deals.
   • If you lack direct RX experience, consider lateral moves to groups with stronger RX or special sits exposure, even within your current bank.

4. Long-term Hedge Fund Transition:

   • Hedge funds like Elliott, Davidson Kempner, and Knighthead are known for distressed and activist strategies. To maximize your chances:
     • Gain as much RX and distressed deal experience as possible.
     • Develop a strong understanding of credit analysis, valuation, and restructuring processes.
     • Prepare to showcase your ability to think like an investor, possibly by creating investment pitches or case studies.

5. Additional Considerations:

   • While top groups like Blackstone and Houlihan Lokey are competitive, don’t overlook mid-market or boutique firms with strong RX practices. These can provide excellent experience and a stepping stone to hedge funds.
   • Keep an eye on funds that value operational experience and are open to candidates from non-traditional backgrounds.

By targeting the right groups, leveraging your network, and building relevant skills, you can position yourself effectively for a move to London and eventually to a hedge fund. Good luck!

Sources: Q&A - HY/Special Situations Analyst at $30bn+ HF in London, https://www.wallstreetoasis.com/forum/hedge-fund/the-future-of-special-situations-distressed?customgpt=1, 20 Most Frequently Asked Questions - London Edition, Q&A: London L/S + event-driven analyst, Q&A: I'm a London-based Distressed Debt Analyst