Looking for a list/rankings of the best distressed funds across both hedge funds and PE. Primarily focused on shops that will recruit out of banking but also want to hear about places, particularly hedge funds, that will want to hire people later in their career with previous buyside experience. Any info on performance/reputation/comp/culture would be helpful
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Based on the most helpful WSO content, working in restructuring investment banking can indeed make you a competitive candidate for typical restructuring-based exit opportunities, such as distressed debt investing. However, the context doesn't provide a specific list or ranking of the best distressed funds across both hedge funds and private equity.
The context does mention that Lazard, Moelis, and Evercore are top choices for hedge funds, especially if you're in restructuring at Lazard or Moelis. These firms also have the advantage of having a generalist pool, which gives you great exposure to restructuring and M&A and allows you to work on a variety of deals.
For hedge funds in London, the context suggests that PJT's analyst program in advisory+RX makes it a target place for distressed/SS hedge funds.
However, for more specific information on performance, reputation, compensation, and culture of these funds, you might want to look into other resources or threads on WSO.
Sources: London Ranking Exit opps PE and HF, Exit opps: I've crunched the previous work experience of 390 PE Associates.., Top Hedge Funds exits LONDON, Houston Restructuring Exit Ops
Apollo, Oaktree (debatable for “best”), Silver Point, Elliott, Aurelius, Solus, Anchorage
Anchorage is just the CLO now. Aurelius is not the same with a lot of departures(look up the story about the founder marrying the analyst…)
Missing: Strategic Value Partners, Redwood Capital, Centerbridge, PIMCO COF, ASOF, Bain Cap DSS, Baupost, KPS, Searchlight, Davidson Kempner, Owl Creek, Knighthead, and many more…
Def a lot more just too lazy to think and list them all on my original comment
Could you split these into tiers/provide some more commentary? I understand many of these funds do different things but curious to see how their reputations would compare across the space. Any insight on comp/performance too?
Every time I see El Seneca post something about distressed it's like 50% incorrect.
I have like 5 comments about the industry lol
thoughts on Blackstone Tac Opps / Credit, Sixth Street, and Angelo Gordon?
BX Tac Opps isn't distressed - look at previous threads
Both part of TPG, Angelo Gordon hairy distressed fund, not sure how they are faring atm, Sixth Street, known for low margin speciality lending, aggressive structuring, large tickets, and quite often do syndicated structures
Blackstone Credit -> aggressive pricing in UK, trying to build, similar to Carlyle Credit vying into the space but not known to be a top credit fund, unlike Arcmont, HPS, Ares etc.
For HFs I would look at which firms are staffing up headcount from large distressed competitors / growing AuM to figure out what existing players view as top seats.
Ie; what firms are picking off staff from larger head count distressed seats (or former distressed seats) like Silverpoint, Anchorage, DK, Sculptor, etc. Firms that have staffed up with competitor talent include. Nut Tree, Redwood, Apollo's HF, Silverpoint, and Attestor. Diameter and Goldentree are in this bucket as well but both have their pluses / minuses. Elliott and Cadian too but not recruiting for distressed investing.
For illiquid drawdown funds - I tend to view people involved in deals that have been very active in deploying checks into distressed situations. Main drawdown players here that play in illiquid (and some liquid) distressed situations in size in my view are ASOF, Centerbridge, Angelo Gordon, Oaktree, Apollo. These seats reliably place into many of the HF seats mentioned as well. Some of the other top illiquid flexible capital seats like Sixth Street and Blackstone Tac-Opps, I don't really run into in distressed situations. Oak Hill should probably be mentioned in either bucket as well though they do lose a ton of people to other firms.
Obviously there are a ton of other players in both buckets but those are ones that come to mind. Source, I am at one of the very large legacy managers ($20bn+AuM) with middling returns which unsurprisingly is a seat I am content with.
Thanks for the comment. Do you have any more insights into 'top illiquid flexible capital' seats like Sixth Street and BX tac opps? Also, wondering how a group like Sixth Street's distressed public markets group would place into distressed HFs.
Sixth street's liquid distressed group would place well into distressed HFs.
I run into Sixth Street and Tac Opps here and there but it has in more non-standard equity linked investments with structure.
any info on exits and general perception for sixth street's strategic capital group?
Thoughts on silver point? You mention them both as a legacy fund and one picking up new people. I’ve heard their comp and performance are best on the street but they have culture issues… thoughts?
I didn't call them a legacy fund, but I did lump them in the category of funds which have a ton of leavers which is true. There are alot of talented people that go there and realize that it isn't for them.
They have historically had a string of very good returns which allows them to pay very well and attract talent. I don't know exact comp numbers but would assume its pretty good, though given how big their headcount is, there are likely firms that pay better than them with better AuM to IP ratios.
If you go there, you will likely be able to move around to other distressed seats pretty easily. They weren't high on my list of funds I wanted to go to given Greenwich location and culture.
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