Best distressed/special sits ... not in NYC?

Incoming an1 at t1 rx shop interested in special sits. Ideally would like to do cross cap stack investing but am open to anything.

I hate cities. I want to live in the middle of nowhere, but I know that's not realistic. I want to be near mountains in a place I can buy a small starter home (dad helping me out)

Wouldn't mind the beach either as I surf

10 Comments
 

Based on the most helpful WSO content, here are some insights for distressed/special situations investing opportunities outside of NYC:

  1. Midwest and South:

    • Funds like Lone Star and Varde are known for their focus on non-traded financial assets and distressed opportunities. These firms often have offices or operations in regions outside of NYC, including the Midwest and South.
    • The South, in particular, has seen activity in distressed investing due to more illiquid markets and banks offloading balance sheet risks.
  2. West Coast:

    • If you're into surfing and want to be near the beach, consider opportunities with funds that have a presence in California. While not explicitly mentioned in the dataset, firms like Oaktree (headquartered in Los Angeles) are major players in distressed and special situations investing.
    • The West Coast also offers proximity to mountains and outdoor activities, aligning with your lifestyle preferences.
  3. Smaller Markets:

    • Smaller or mid-market players often thrive in less competitive regions. These funds focus on niche opportunities, such as post-reorg equities or smaller TLA/B structures, which could align with your interest in cross-capital stack investing.
    • Examples of funds with a focus on smaller markets include Angelo Gordon, Centerbridge, and Sixth Street.
  4. Lifestyle Considerations:

    • If you're looking for a balance between career and lifestyle, consider regions like Denver, Salt Lake City, or even parts of the Carolinas. These areas offer access to mountains, outdoor activities, and a more affordable housing market compared to NYC.
    • Denver, for instance, has seen growth in financial services and could be a good base for remote or regional opportunities in distressed investing.

While NYC remains the hub for many top-tier distressed funds, there are definitely options in other regions that align with your lifestyle goals. Keep an eye on firms with satellite offices or those that focus on regional opportunities.

Sources: Distressed Investing: This Time It's Different, Distressed debt / special sits investing - On the job, Multi Family Investing - New York City, Credit Hedge Fund opportunities, Direct Lending --> Distressed/Special Situations Investing

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

From my understanding, here in Minneapolis we have a lot of smaller distressed or mezz-type funds that might peak your interest.

no mountains, but a lot of outdoor activities and stuff near the water if you go up north. If you live ~30-40 minutes from downtown, you start seeing farms and stuff.

 

There’s a lot of hedge funds in Miami and West Palm Beach office - Apollo, Redwood, Elliott… there are a bunch more niche ones that I forget, but they’re there. Also private credit too.

Headhunters can point you in the right direction, just don’t tell them you’re against NYC completely because then they just won’t show you roles. Would wait until you’re a few months in though before reaching out.

 

Anything you can add on their rep/performance?  Seems like an interesting mandate on paper and Kevin Eng has a super impressive background but their 13F paints a slightly different picture (and yes, I know 13Fs are incomplete, don't show credit/derivatives/swaps/etc., the names in there are just odd)  Makes sense they're in Short Hills given the Appaloosa heritage.

 

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