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Yeah they are on Citi's free money list
?
https://www.americanbanker.com/articles/citigroup-sues-hps-symphony-ove…
Why the hell would the refuse to return the money? Is there any chance they would get to keep it? Seems like they will have to give it back and end up with negative press.
Not a lender here but at a competitor - but I would recommend my firm to 100% hold until a court mandated that it needed to be returned. There are no "wins" in just sending back.
There is some relationship here that could be burned but its just business. If it was a loan that Citi had made and they immediately sent the money back to the agent, I'd think there could be a (likely frivilious) shareholder lawsuit filed. As a sophisticated lender who plays in the distressed space where litigation is common, HPS (and others) can't just send the money back and should let this play through court. Sending it back appears weak. Our clients would expect that of us as fiduciaries of their money and I expect HPS's investors would as well.
Additionally, in this case Citi will play all legal cards to expedite this court decision to get their money, where they likely would delay if HPS sent money back but filed a legal challenge under something in their credit agreement. Citi's mistake here - they need to put in the ground through the legal system, not HPS (note Revlon probably pays for this litigation).
Some mistakes have resulted in outsized recoveries for the beneficiaries of such mistakes, especially in the bankruptcy context. Prime example is the GM UCC accidental release. https://www.foxrothschild.com/publications/tales-of-the-gm-bankruptcy-erroneous-ucc-3-termination-statement-results-in-loss-of-secured-interest-on-1-5-billion-term-loan/
Very solid firm for Mezz/credit stuff.
This. One of the best in credit / mezz. Highbridge without these groups is pretty irrelevant at this point.
Anyone have any insight into types of deals they do, hours / lifestyle, recruiting process, and / or comp? Seems like they do some hairier / more complex deals, but would love to learn more
Following.
Bumping. Interested in credit comp.
Vp $165 salary/ $165k bonus. 4% carry. $500 aum
This is false - senior associates earn more than that. Vp base is 175k. Should think of comp as like 450- 500 all in + carry
I feel like 4% carry for a VP is on the high side?
Don’t know much but they did a few high profile deals with Bombardier and Smiledirectclub
Very very sharp guys who do real diligence (commercial, industry etc) along with sponsors instead of typical credit guys who look at downside cash flow risk etc - not that this is omitted at all in dili. They understand and undertake more complex deals than other DL shops I've worked with (which yes has made my life easier) but are smart and personable folks
Super helpful perspective. Mind if I DM you with some questions on your experience working with them?
I assume you are interviewing for that associate - direct lending role. What the guy above just said - I have 13 of their non-sponsored deals spread out in DETAIL u need and agree w what he said. They aren’t afraid to take on some tough unique deals. Hit me up and I’ll get u the insight u need (IF you are interviewing)
Go for it man
Very smart investors who can write equally large check sizes. Would put them up with Apollo and maybe one or two other firms who can do the deals they do. Unique investing style that lets them take more risk (and get paid for it) than other DL shops.
Can you elaborate on how their style differs from other firms / lets them take more risk?
Yes - think other’s have aluded to the fact they’ll work really hard and do equity like diligence (sometimes more so than the actual sponsors). That + structuring they’re more thoughtful and probs they’re strongest suit (vs someone like ares who can also do strong diligence)
I know them quite well and I really like them. They are very solid for mezz, and the Specialty Lending strategy is also very interesting. Basically they do large size, upper middle market, very highly structured deals. They do a lot of asset-backed lending, and also have significant non-sponsored deal flow, which is very unusual in the market segment in which they operate. There are other large managers who also provide private debt to upper mid market companies, but those are mostly sponsor deals. I have met most of the senior team and Mike Patterson is one of the very best in this industry.
unfortunately I cannot speak to recruiting or working hours.
Mind elaborating a bit more on asset backed lending? Any example would be great. Thanks
Well known I believe in credit circles. Friend of mine there I believe was on an s&t desk at jpm before moving to hps. He didn’t seem like the money hungriest type. Prob seems like a stable, well-paid finance job and firm
on the other hand I had a fairly money making / commercial Wharton friend who interned at high bridge in like their converts biz and he is now at coatue probably after a pretty roundabout type career in terms of tradition. He is probably fairly high up there on the relative net worth basis
We are in several deals with them. They’re sharp and do equity-level diligence. I imagine comp is in-line with other large private credit providers.
Hi any insights into the interview process for HPS? If you know of any good resources that might, please do share.
Many thanks
I can help deep dive into HPS to prepare. I’m creating a primer/online course in the space and have 16 HPS deals I’ve deep dive spread out. I also can send u HPS overview of platform but that’s easy anyone can do that.
Happy to help - HPS deals get my juices flowing. Respect their platform and consider them in a league of their own
Thanks man, appreciate it
Planning on interviewing here later next week... if you have any of that deep dive info/deals I'd be very interested.
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