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?

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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 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.

 

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.

 Can you please pm me - would love to talk to you about your interview experience

 

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. 

 

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