2018 best RX shops on the street?

financey's picture
Rank: Chimp | banana points 15

Curious about best perceived restructuring shops on the Street. Maybe in terms of deal flow, current momentum, exit ops, pay. Any perceptions are appreciated.

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Comments (32)

Jul 17, 2018

PJT - probably the top shop on the street

Lazard / Evercore / HL - All very good and have solid deal flow and exits. Heard really good things about work life balance at HL

Millstein - heard really good things (comp was apparently top notch)/was up and coming but idk how the gugg acquisition changes things

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Dec 22, 2018

Lazard's deal flow has been strong these days - where are the analysts going?

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Dec 27, 2018
SevroII:

PJT - probably the top shop on the street

Lazard / Evercore / HL - All very good and have solid deal flow and exits. Heard really good things about work life balance at HL

Millstein - heard really good things (comp was apparently top notch)/was up and coming but idk how the gugg acquisition changes things

I've heard of people being wheeled out of HL London by paramedics after collapsing. Former colleague who worked there had 2 free weekends in 3 years.

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Dec 27, 2018

Sorry comments applied to NYC only, no idea on other locations

Dec 27, 2018

Heard LA RX respects the idea of worklife balance as well

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Dec 27, 2018

Do you know how they pay in Europe? Their team in Europe seems to be very small.

Dec 28, 2018

I have heard above market but can't confirm if that is true.

Jul 17, 2018

What are some general personalities that work in RX? Aren't you dealing with some pretty tough situations?

John Downey

Most Helpful
Dec 22, 2018

As mentioned. Best analysts roles for Rx with top pay, prestige, and exits are PJT and EVR. Most well-known analyst programs that specialize in Rx are PJT/EVR/HL. HL also very good. Lazard's group is also great but the analyst role is M&A/Rx. Exits from all these groups are fantastic.

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Dec 24, 2018

This is inaccurate regarding Lazard's program. They split their Industry (usually M&A) and Rx practices into separate groups, though sometimes a deal works through more than one group (e.g. I think the Toys bankruptcy was worked on by both the consumer and Rx groups). So the Rx analyst program is actually separate from M&A.

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Dec 25, 2018

Clearly you work for EVR. No one lumps their rx practice with other top rx practices. Also, recently analyst placement has not been too great. Their bread and butter is m&a

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Dec 25, 2018

Jeez.. pretty harsh response. Their Rx analyst placement has been fantastic so not really sure what you are talking about. Also, the comment about Lazard is inaccurate as they also have placed very well in recent years.

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Dec 25, 2018

Yea not sure what jsmith is talking about. Also the Moelis comment was helpful although I wouldnt group it with the others as it hasn't really been a target firm for analysts interested in restructuring. I would say that if you are at PJT / EVR / HL you are in a great analyst group as they all place very well. The comment about Lazard's analyst program was also very insightful.

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Dec 22, 2018

Doesn't get as much love on this site because the analyst program isn't dedicated restructuring, which makes sense given the audience of WSO, but Moelis has killed restructuring in 2018. I'm positive they're first place in the bankruptcy league table by value, and maybe second by the number of engagements.

All the above listed are great shops. Some like Lazard are more debtor focussed vs HL which does more creditor work. As a rule of thumb, every firm does both, but different firms focus their practices differently. Debtor engagements tend to pay higher fees but in a restructuring, there's one debtor and often many creditors, so obviously fewer opportunities for debtor-side work.

The NYC bankruptcy world is very small. You see the same bankers and lawyers over and over again.

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Dec 27, 2018

Also doesn't get much love here, but Rothschild is strong. Know people currently at Moelis and Rothschild who are on some killer mandates.

Guggenheim might be one to keep an eye out for going forward.

Dec 27, 2018

Most of the senior team at Rothschild left

Dec 27, 2018

Just the co-heads pretty sure. They seem to still be getting plenty of deals.

Regardless @ OP, recommend looking at the data (league tables, LinkedIn, articles) rather than this forum.

Funniest
Dec 25, 2018

Is thread a bunch of Moelis analysts downvoting the non-Moelis comments lol?

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Dec 25, 2018

Look at the Thomson Reuters league tables (ignore non-investment banks).

Q3 18:
https://ibb.co/pQX6Zyn https://ibb.co/d7TwP4x

FY 17:
https://ibb.co/qkmFSpc https://ibb.co/7KdDYvp

Dec 26, 2018

Deleted

Dec 27, 2018

Question: why ignore the non investment banks? Do they do something else? If so, why are they on the same league tables?

Dec 28, 2018

They don't do the same work as investment banks from a restructuring perspective. The consulting firms you see on the list typically focus on operational restructuring whereas the banks focus on financial restructuring. As a company, it is very common to hire both an operational advisor (an Alix/A&M/FTI/Zolfo) and a financial advisor (Laz/Moelis/HL/PJT).

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Dec 28, 2018

Got it, thanks

Dec 25, 2018

Good stuff. Would agree with the above in terms of exit opps for best analyst classes (PJT/EVR/HL) but interesting to see recent deals being done at diff firms. Jefferies is another good shop that rarely gets mentioned

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Dec 27, 2018

HL RX has placed well in LA from my understanding. Given their specialty in creditor side advisory, their analysts are exposed to numerous credit funds which bodes well for them. Furthermore, creditor side roles are less intense compared to debtor side roles. You will often times see Analysts balancing 4 or more creditor rx deals (more facetime with creditors) while debtor advisory may require an analysts full attention. I have always found debtor side advisory roles to be more fulfilling.

-XSX

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Dec 27, 2018

HL RX kills it. Moelis kills it. EVR kills it. PJT/LAZ kill it. They all place very well. Tbh any rx shop will kill it over the next few years as maturities need to be extended and overlevered sponsor backed companies file. Can't imagine a better group to be in given the current environment.

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Dec 27, 2018

I would disagree with your last given the following:
1.) Given the rising rate environment and brexit warnings since 2016, a lot of the refinancings and maturity extensions have already been executed in 2017 / 2018
2.) The vast majority (i'm talking like 85%+) of leveraged loans have been issued as covenant-lite or some sort of "covenant-loose" with a ridiculous headroom (think of like 40%+ assuming full RCF is drawn) so I would expect covenant breaches will be a lot lesser than you normally expect, even assuming we've reached the peak of the credit cycle and things head south starting next year

I do agree with your RX bank list - usually some combination of PJT / LAZ / HLHZ / EVR / Moelis when it comes to straight up dealflow. On a side note, some of the smartest kids I've ever met worked at PJT RX and Ducera RX, and they both absolutely loved their experiences for what it's worth.

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Dec 27, 2018

Expect a lot more creditor fights and litigious deals as a result of all of these covenant-lite loans

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Dec 27, 2018

Yes - my guess is that creditors and debtors start liability management processes much sooner (and higher advisors earlier) e.g. NMG

Dec 27, 2018

What has EVR done that gets them a good reputation? I remember they got TXU but I thought perception was they didnt do the best job there (personally no opinion)

In terms of an overall practice I dont think they rank with Laz/HL/PJT but I guess the analyst program is different? Where have analysts landed from EVR Rx?

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Dec 27, 2018
Dec 27, 2018