Derby Lane Partners?
What do people know about this firm? Online it looks like the fund was formed recently and they launched with a lot of capital. I know credit is attracting most of the investor capital these days, but seems pretty unusual. I think they had a job posting up for a junior role but it closed. Any opinions on joining a company like this vs recruiting for a MF type firm?
For a lot of these guys the risk is going to be the ability to put capital out at scale and hit the returns they promised investors.
$1.8b is not too crazy, assuming ~85% back leverage advance rate that’s about $12b, or $2b of originations a year for a 6-yr investment period. Back in 2022-23 hitting that number even as a startup firm is not difficult especially given their deep bench, but harder to say today IMO.
Looks to be backed by a solid pool of managers/capital so would say job security for at least the next 2-3 years wouldn’t be bad. After that the pace of deployment and returns will determine follow up capital raising and therefore prognosis of the shop.
Agree that scale is usually the big issue with new funds. They raised a bunch of money, but it is super competitive to put money out right now and meet the rates that investors were promised. My guess is that they promised around 10% net with a ~65% LTV portfolio. Even with leverage, that means the focus has to be on SOFR + 400+ bps type deals (I’m hearing they won’t take more than 70% leverage). Credit funds usually have 3 year investment periods, and with value-add/opportunistic funds that have inherent refinance risk, they probably need to be doing 2.5bn to 3bn a year to get there. The other big issue with a new fund is certainty of execution. When you start a new fund, the market has to believe that you can close a deal. I’m sure this group has good connections, but the market doesn’t give a ton of second chances.
It looks like the top guys came from Madison, Apollo, Blackstone, and Acore, with the founder coming from BDT & MSD. The good part about “mega funds” is that they typically have good analyst/associate training programs, similar to banks. The hours usually suck and there is a ton of ego/politics, so some people (like the group above) decide to leave for something entrepreneurial/better WFB. I can’t tell you what you would or wouldn’t enjoy more, but if you feel like that is where you are going to end up anyways (with a family, wanting something stable, but better WLB), then joining a company like this while you are young, may be the better option.
AFAIK, the analyst role is still open.
On linkedin says no jobs are available though?
I interviewed with the VP, she is one miserable person. Holy shit I wanted to get out of the interview so bad.
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