From a quick search, it appears that Goldman SSG is a strong group to be in with exit ops including TPG, GS, KKR, ARES, etc. I am sure that these large funds routinely get their talent from BB restructuring groups.
The vast majority of the info on WSO is relates only to GS. However, there are many other groups out there that do this style of PE investing. The scale seems heavy on both ends; either very small or very large players.
I am curious how many applicants TPG, etc. gets that actually have real SSG experience, albeit at a smaller shop. Would they view this as better experience than 1-2 years restructuring at a BB?
What exit ops exist for the smaller SSG shops?
Also, I am talking about experience with bankruptcy, non-performing litigious debt rather than turnaround OpCo deals.
Sample small SSG shops:
http://www.americancapital.com/Pages/our_business/special_situations/sp…
http://www.valstonepartners.com/
.
As answered before, the SSG exits are usually to HF or the one posted about TPG was to TPG's HF group, not their PE group.
Haven't see any SSG guys in the mid market, but they might be a good fit for distressed PE (I wouldn't know, it's not my fund's strategy). For non-distressed PE in the mid market, I guess we'd consider them if they have a banking background to go with it but we wouldn't take someone with SSG experience alone.
Don't want to out myself but I have an inside look into SSG groups (3 main verticals), the most interesting one being the equities group. The others are hardly considered PE and are more illiquid investing. Maybe a distressed shop has a different view but traditional buyout guys still want applicants who have transactional experience which goes beyond buying/selling airplane leases.
Finally, not familiar with those names you posted except for Valstone, which is a joke of a firm.
do not call avenue capital a small ssg shop
it is a premier distressed principal firm that should be included in your list of places into which GS SSG analysts might exit
Sanity - Thanks for the response. I completely agree with the poor buyout translation and assumed that even small SSG would translate decently to lower-market distressed PE.
Still, is small SSG experience more valuable at megafund SSGs given the smaller overall SSG candidate pool?
If a recruiter/HR/networking person at TPG sees Valstone SSG Associate, are they still going to preference the BB IB Restructuring? Maybe I am wrong, but after sifting through hundreds of MM and BB IB and lower/mid buyout PE resumes (I assume they get their fair share of those looking to transfer out of smaller shops), I would likely give an actual SSG Associate attention.
Can you elaborate on joke of a firm? I know it is small ($300MM AUM, $1B invested since '98), but why a joke?
harrr - I just did a quick search on non-GS SSG - yes, they are significantly larger than I am referencing. I would delete/edit to remove the distraction but cant figure out how.
Not going to publicly ostracize them but their undergrad hiring practices are sketchy (close friend interned there) for peanuts which he had to negotiate for because they wanted him to work for free. Work itself was menial as well.
I guess someone else with a distressed background can answer the rest of your questions but for most shops, if they get a no-name on the resume it's up to you to convince them that your investment experience is relevant.
Valstone for example lists typical transactions as:
"Seasoned Performing, Sub-Performing & Non-Performing Loans Finance Borrowers with Cash to Repurchase Notes at a Discount Institutional and Non-Institutional Quality Real Estate and REO Purchase Money Mortgages and Seller Paper No Construction Loans or Raw Land Loans"None of those deal types would appeal to me when hiring someone for PE (I'll skim to the bankers and PE laterals) but again, I'll let someone with a distressed or SSG background take over.
Interesting take on Valstone, and not surprising either.
Thanks again for the response and I think you make a valid point: SSG to LBO PE can be a difficult transition.
Looking forward to feedback from those with distressed experience.
Bump - Anyone have any insight on exiting from small SSGs? Do large SSG/distressed funds willingly accept SSG candidates due to the smaller candidate pool?
Interested in hearing more of the day to day for a SSG 1st year analyst. Similar responsibilities to that of IBD? And to further clarify, is the SSG the financing/capital raising for the PE groups deals? While at some firms it acts more as a prop investor (GS)?
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