Is Sixth Street a MF?

How do people view this shop? $60B+ AUM and rapidly growing but spans special situations across growth, infrastructure and other strategies. TAO is one of the largest pools of private capital but feels different than other MF flagship funds due to the more long-term nature. Is reputation / comp on par with other MFs? Closest peers?

Comments (21)

Funniest
  • Analyst 1 in IB-M&A
2mo 

No

  • 3
  • Intern in PE - LBOs
2mo 

Bump. Curious to know how does it compare to other large SS funds like Oaktree?

2mo 
JesseJamesMOI, what's your opinion? Comment below:

Very strong fund that is highly regarded within their strategy. They've been really building out their platform with other strategies too since breaking away from TPG. However they are not typically comp'd to other "MF PE" though. They are not really a PE fund. The mostly do special situations and debt investing. Oaktree is probably a good comp

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  • Analyst 1 in IB-M&A
2mo 

They have more than doubled capital in the past 3 years. Feel like they aren't a MF yet but will get there if they continue the rate at which they are raising capital over the next 3-4 years. Funds have returned around 11-14% which is great for a fund that's heavily credit oriented. Pretty lean structure (group I interviewed with only took on one associate per year for what's essentially one of the top groups internally) with internal promotion and (at-least) some groups pay carry at associate level with strong cash comp for a non-traditional fund.

The set of guys I have interacted with are extremely sharp. Ability to invest across capital structure and I believe are looking to grow their controlled investments now that the spin off from TPG is complete - believe their flexibility is their biggest advantage.

Looks like one of the few places that's grown AUM like crazy that pays well and doesn't push you out.

Source: interviewed and received an offer from Sixth Street during this past on-cycle.

  • Analyst 1 in IB-M&A
2mo 

Analyst 2 in IB-M&A

They won't become a MF and it doesn't matter. Plenty of elite funds out there like veritas, gtcr, leonard green that aren't MF.

Veritas has 45 Bn, GTCR has 10 Bn and Leonard green has 50 Bn. 4 years ago Sixth Street was small than Veritas and Leonard Green. Today it's bigger by a large margin.

The growth Sixth Street has experienced isn't line any other firm in today's times. I would argue that makes it incomparable to a lot of other top non-MF shops.

  • Analyst 1 in IB - Gen
2mo 

What was the comp + any benefits you were offered for Sixth Street?

  • Research Analyst in HF - Event
2mo 

Generally speaking, is a corporate credit opp at sixth street comparable to a credit credit opp at apollo?

From a career only perspective I'd rather be at sixth streets opportunities (I think they call it strategic investments now) funds vs. hybrid value but personally wouldn't move to SF vs NY.
 

Liquid credit is a bit of a wash depending on group. 

  • Associate 2 in PE - LBOs
2mo 

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