What deep value or distressed PE funds go on-cycle?
Title basically. Just curious with value, deep value or distress buyout funds go on-cycle.
Some of the ones I'd like to know are...
Apollo - Yes
Centerbridge - ?
KPS - ?
SVP - ?
HIG - ?
American Industrial Partners - ?
Oaktree Special Sits PE - ?
Cerberus - ?
Platinum - ?
Searchlight - ?
any of the MMs (Stellex/Monomy/Gamut/One Rock) - I am assuming not.
Feel free to add any others.
Centerbridge and Oaktree fill a good portion of their class during on-cycle every year. Depends on fund and location, but HIG also usually runs an on-cycle process.
Oaktree depends on fund as well. Their larger funds go on cycle but some of their smaller strategies (GFI) don't.
Do you know if they run it for their Special Situations Private Equity Strategy?
What do you mean by “deep value” sorry incoming analyst and new to all this
Value oriented as opposed to growth oriented (e.g. Warburg, H&F). It means they invest in assets that they believe are undervalued. For example, a place like H&F would invest in high quality compounding businesses in growing industries even if it means going in at a high multiple. Deep value places care less about the quality of the business and focus on the price, believing that anything can be a good business if you go in at the right multiple (e.g. ~6x EBITDA). Deep value places also place a huge emphasis on free cash flow generation and ROIC as opposed to top line growth. A lot of these deep value funds dabble in distressed territory, meaning their mandate includes companies in Chapter 11 or buying the fulcrum security of a company — essentially the tranche of debt that is granted full equity control over a business under the Plan of Restructuring after it emerges from bankruptcy.
“Deep value” is just marketing spin for buying low quality companies.
KPS recruits late - not on-cycle
They don’t do it now!!!
From a friend that works there, I heard Fitzwalter may take an on-cycle recruit this year
Interesting. Do you know who their HH is?
no idea unfortunately
Did both PE and HVF go oncycle for APO? Or just HVF
Both
HVF filled their spots on-cycle. PE did a second round couple months back.
Searchlight doesn't go on-cycle to my knowledge. They were still recruiting for 2024 associates late last year.
Would add Silver Point takes some on-cycle (maybe not necessarily distressed buyout, but obv in the broader distressed world)
Interviewed at Oaktree on cycle 2 years ago
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