Distressed/Special Sits B-Schools?

Based on the most helpful WSO content, here's what you need to know:

1. Engagement and Intellectual Stimulation:

   • Distressed and special situations investing is often seen as more intellectually stimulating compared to traditional buyout PE. The work involves dealing with complex, high-pressure situations, which can be more engaging for some individuals.

2. Perception by Business Schools:

   • Business schools generally do not look unfavorably upon a background in distressed or special situations investing. In fact, the unique challenges and skills developed in this field can be seen as a strong asset. The ability to navigate complex financial situations and think critically under pressure is highly valued.

3. Exit Opportunities:

   • Many RX analysts exit to a variety of roles, including MFs, UMMs, and non-distressed HFs. This demonstrates the versatility and broad applicability of the skills gained in distressed and special situations investing.

4. Pros and Cons:

   • Pros:
     • Higher intellectual stimulation.
     • Potentially higher compensation due to the volume of deals and exits.
     • Freedom in deal origination.
   • Cons:
     • Unpredictable hours, especially during distressed situations.
     • Limited resources during the monitoring stage compared to buyouts.
     • Tougher to explain your resume at exit to regular PE people.

5. Networking and Preparation:

   • Top RX shops begin interviewing early, so preparation for technicals and networking is crucial. This early preparation can also be beneficial when applying to business schools, as it demonstrates commitment and foresight.

In summary, a background in distressed and special situations investing can be a strong foundation for business school applications, offering unique experiences and skills that are highly valued.

Sources: Distressed vs. Credit vs. Special Situation vs. Turnaround PE, Special sits & distressed vs buyouts?, Wharton kids favor restructuring/distressed investing?, Distressed vs. Credit vs. Special Situation vs. Turnaround PE, PE isn’t the best way to get into b-school