What even is Blackstone Tac Ops
Little is said about the group and it’s coverage. Fair to say it’s a special situations platform for BX? Seen some folks in that team shift to growth equity, credit etc. what’s confusing is that the firm holds PE, Growth Equity, Credit, etc. funds that are massive so essentially all the verticals Tac opps would be covering. So not exactly sure what Tac Opps is, are they some sort of recap, spinoff and special situations fund? Appreciate the contributions
Heard Tac Opps are meant to pick up deals that don’t fit clearly within one of the clearly defined mandates.
Good or bad mandate depending on how you look at it. Each deal will be “harder” / more challenging.
everything else aside, its fucking hilarious that these people are called "tactical opportunities." I can't help but laugh that theres some nerdy ass Wharton grads out there who thinks they're in high finance delta force
Right before grinding out a model they say “Bravo Six, going dark”
Agreed. To think they are trying to portray that what they do is the same level of difficulty /complexity as Delta (or any elite sof unit) is cringe as fuck
when you can't work at the CIA because you want money so you go into a "tac opps" team at a MF.
This is exquisitely based haha
There's a huge gap on the returns spectrum between the top end of unitranche / direct lending / mezz and private equity. BX Tac Opps will do anything that isn't a debt tranche or a straight buyout, but somewhere in between. Think pref + warrants type deals with a 13% base case return and upside to high teens / 20s. "Solution capital" for founder transitions, overleveraged businesses, stuck minorities etc.
>stuck minorities
like Asian immigrants who aren't women or something
The gap has shrunk considerably, especially when taking into account that loan /HY funds are levered. Owl Rock getting 17.1% levered IRR on primarily 1st lien debt. That's better than some poor-to-average performing buyout funds.
wow at those returns
It was born to catch all the ‘unsortable’ opportunities that are interesting. Ie Compelling investment opportunities come through the funnel, they don’t fit into the vanilla PE, RE, or credit strategies/mandates/cost of capital, so they flip to tacops.
Over time, there’s some pattern recognition in how many of a certain type of “unsortable” opportunities come down the pike, and so you build out a specialized standalone team in that strategy.
At a place like Bx where they’re constantly building new business, this is inevitable. That why it’s hard to define what they do over a moving time series.
TacOpps formulating their strategic plan for a minority investment into a Chinese data center
What's the hiring process for an experienced ASO like if they look at everything? Is their a cookie cutter resume they typically hire?
It's where they do trash deals, fam
In reality, they do a lot of the deals which other teams (BCP / BREP) had first look at but passed on because it's too hard to underwrite the typical high-teens / 20% returns hurdle necessary to get through IC.
They do have proprietary deal flow but its almost always some sort of convertible PIK structure.
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