Culture in Distressed Buyout
Hi monkeys. After doing my due diligence and speaking with many in the industry, a distressed/turnaround PE investment philosophy seems like the right fit for me longer term. However, I often hear about the less than great cultures at firms in this space. Obviously Apollo, but others such as Cerberus and Centerbridge as well. Are most firms in this space especially sweaty, if so, what leads to this correlation, and are there any standout exceptions?
You are in an industry where the thesis is often going to court or litigation. Going to be a ton of sharp elbows.
I've had good experiences with the minneapolis based distressed funds on culture. And yeah minneapolis sounds wierd but there are three or four top shops based there.
Culture at most MSP based distressed focused firms is awesome but long hours though. Most are spun out of Cargill..
On average, distressed shops work harder than non-distressed shops. There are plenty of firms with a great culture that work on "hairy" transactions. I'd guide you towards middle market value firms with significant carve out experience. Not exactly distressed, but similar work in terms of building a strong company out of ... not a strong company
I know Apollo is known to be a sweatshop, but I've heard great things about Centerbridge. They're a top fund in special situations and a few friends who work there say it's a hard working space with a ton to do but a great culture build off of Mark Gallogly
Centerbridge has a shitty hardo culture. It’s like Apollo with terrible returns.
0.87x net moic on the 2010 vintage last time I checked, though the 2014 fund seems to be doing well so far (around 1.5x)
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