Latest views on Sixth Street?

Sixth Street has grown massively since its spin out from TPG and attracted some top-notch talent, particularly from Goldman Sachs. Today, the business is $75 billion AUM and has pockets of capital investing across the capital structure and within substantially all industries. The firm also has a significant insurance presence through Talcott. Will Sixth Street be one of new private credit (broadly defined) behemoths positioned to win and take share from banks alongside Apollo, Brookfield, Blackstone, etc.?

Would be curious the views of any insiders - does it feel like the strategy is well defined or is it disorganized internally? How is it structured? How is the culture? Does it still feel like an SF-centric firm? How is comp / career trajectory?

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Based on the most helpful WSO content, here are some insights on Sixth Street:

General Overview:

  • Growth and Talent: Sixth Street has indeed grown significantly since its spin-out from TPG, attracting top talent, especially from Goldman Sachs.
  • AUM and Investment Strategy: The firm manages $75 billion in assets under management (AUM) and invests across the capital structure in various industries. They also have a notable insurance presence through Talcott.

Strategy and Structure:

  • Strategy: Sixth Street appears to be shifting towards private and growth equity, moving away from its legacy credit strategies.
  • Internal Organization: There is some curiosity about whether the strategy is well-defined or disorganized internally. However, specific details on internal organization are not provided in the knowledge base.

Culture and Work Environment:

  • Culture: The culture at Sixth Street is generally perceived positively, though detailed insider views on whether it feels SF-centric or how cohesive the strategy is internally are not explicitly mentioned.
  • Work-Life Balance (WLB): There is an interest in understanding the work-life balance, but specific insights are limited.

Compensation and Career Trajectory:

  • Compensation: Compensation at Sixth Street is competitive, likely on par with other major firms given the quality of candidates they attract.
  • Career Trajectory: The firm is seen as a good place for career growth, though specific details on career trajectory are not extensively covered.

Additional Insights:

  • Top Groups: Healthcare & Life Sciences are notable areas within the firm, with other groups categorized under Strategic Capital or Fundamental Strategies.
  • Backgrounds: A significant portion of the firm's employees come from Goldman Sachs, even at junior levels, with some from top restructuring (Rx) groups.

For more detailed and specific insider views, it might be beneficial to engage directly with current or former employees on platforms like LinkedIn or through networking events.

Sources: What's it like working in Corporate Strategy?, Any info on Sixth Street Partners?, Thoughts on Centerview SF / Palo Alto (Comp, Culture, etc.), How to Diligence Firm Culture / Determine Fit (Post-MBA / After 2-Year Program), Any insights on Sixth Street Growth?

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Business-wise / GP perspective they seem hot and with the latest enstar deal it seems like they may be continuing the trajectory to maybe IPO one day. But all tbd 

 

Anyone have any insight into real estate at Sixth Street? What is their main office, SF? What is comp like for ASO?

 

Rumbler:

Whoever said three year path to VP? Lets be transparent here and let folks know its a two year program aight?


I understand you didn’t get the 3rd your associate promote but that isn’t the way the program is structured. If you perform you will definitely get the 3rd year promote and VP at the end of that - they don’t have a real senior associate position so you get the 3rd year with the assumption that the VP position is yours too.

You don’t have to take my word on it you can literally go to LinkedIn and look at people’s backgrounds.

 

Yup good brand and they seem to push this whole image of being different from traditional megafunds / finance but at the end of the day its the same stuff packaged in nicer wrapping paper. Also if you are in M&A / Coverage would be very clear if you want to be doing credit because I have heard that they tell people they can do buyouts / equity but in reality that is few and far between. 

 
Rumbler

Yup good brand and they seem to push this whole image of being different from traditional megafunds / finance but at the end of the day its the same stuff packaged in nicer wrapping paper. Also if you are in M&A / Coverage would be very clear if you want to be doing credit because I have heard that they tell people they can do buyouts / equity but in reality that is few and far between. 

Same guy as above - top group in a particular coverage that Sixth Street is pretty active in. We market our sell-side deals to SSP all the time and they participate meaningfully in most of our processes, including submitting competitive bids (transactions ranging from $100 MM to $1.5 Bn+). Again, they have historically been more credit focused but they are definitely building out buyout side of their business. 

The whole strategy at Sixth Street is being flexible across the cap structure so you will for sure be doing credit, but you also get the traditional PE experience.

 
Most Helpful

Fair, but just once again for transparency sake want folks to know you need to like credit basically and capital structures. The whole thesis of Sixth Street is downside protection + low teens yield so ultimately you will be doing structured investments in the debt / equity and much more rarely common equity because thats too high up the risk spectrum a lot of the time frankly for the firm. Now sure of course they have the flexibility to do some control transactions when it makes sense strategically such as Legends / Enstar, but just don’t expect that to be the majority of deals. Most deals are going to debt and then from there like structured equity / pref and common equity here and there and THEN control common equity deals maybe I could count on one hand maybe two lol

 

Any updates on their 2026 process? Know the HH sent out an email a few weeks ago

 

Avoid. Sweaty with significant amount of turnover given the churn and burn of Associates

 

Found a really helpful Glassdoor review from a former associate called "Successful Fund but Toxic Culture - Associate Sixth Street Employee Review"

"Highly toxic culture, which among other things includes: 1) crazy work hours, even for the investment industry (you will work through holidays and scheduled PTO days), 2) stressful environment, constant and unrelenting pressure which comes from all levels of the firm, 3) intentionally under hire and they pay below market rates because the partners view it as a "privilege" to work at the firm, 4) poor back office practices and support (lack of investment in the plumbing / logistics of the firm), and 5) a review process that intentionally beats people up and views "constructive" criticism as the only relevant feedback Despite all those factors, in both the firm's marketing and how they sell themselves in interviews with candidates they'll frame "culture" as the top focus / asset of the firm - don't buy it"

Seems like the firm has some cultural problems which may attribute to the churn and burn of associates?

 

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