Comments (50)

  • Analyst 3+ in PE - Other
Feb 23, 2021 - 8:22am

It'd be pretty dope if you could share a bit so other people (me) can learn vs inviting people to bombard your inbox (I'm shy).

Most Helpful
May 17, 2021 - 9:55pm

I work at DK. Associate-level. I'm using a throwaway.

I'm not that knowledgeable about pay so I'll give some guesses about higher levels based on the data points I do know. Associate can expect around 200k base and 100% bonus, around 300-400k total comp. There is Principal, and also Managing Director. They tend not to hire externally for these higher levels, even some more experienced people come in at Associate and have to get promoted. Both Principal and MD get points, but it's not a huge amount. Principal I would estimate total comp at around 600k-800k with 100-200% bonus. What I can tell you for sure is that there's a huge variance around MD pay depending on the role you serve and how important you are. Some MDs are maybe 800k. Some MDs are well into 1M+. Some MDs who serve some kind of leadership role even more. Honestly, there's tons of variance around pay as it really depends what you bring to the table and what your experience is. It's not like some PE fund where everyone comes in at the same level. There are a ton of partners, so don't expect to make partner anytime soon.

Reputation, they are a consistent fund, but not a flashy one. In good years they perform ok, in bad years they perform ok. If you want some highly-leveraged risk-chasing HF that hits 20% returns this is not the place to be. Major player in distressed and that was historically the core strategy. Nowadays they are a multi-strat fund and most of the PnL coming from other areas such as L/S equities, corporates/HY, merger arb,  convertibles, and actually structured credit and real estate were big profit centers over the past few years.

Culture is probably significantly stronger than most funds out there. The asshole ratio is very low here. Most people are nice and there isn't that selfish attitude you get at a multi-manager fund. People get like 25 vacation days which is very high, and while most people take them around Christmas, it's still good. If you don't want to work with assholes then this is probably your best bet as far as an HF goes. This is probably why there's fairly low turnover. Work/life balance varies, some teams like real estate do a ton of hours, other teams may be more like 8:30-6:30 typically.

You don't hear anything about DK is by design. The partners don't care to project an image the way Ken Griffin and Bill Ackman might.

  • Investment Analyst in RE - Other
May 17, 2021 - 11:12pm

Thanks for doing this. Do you guys have a vesting period/holdback on any part of your cash comp?

  • Associate 3 in PE - Other
May 18, 2021 - 4:13pm

I know two former DK associates and their comp. Both were factually in the $700k-$1MM cash range, though we're on the senior side of associate. These data points are from within the last 2-3 years.

Dec 9, 2021 - 7:29am

They have close to 150 investment professionals resulting in 266 million per IP. Combine that with mid to high single digits in average returns and you'll realize there's not a ton of money of laying around

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  • Investment Manager in HF - Other
Dec 9, 2021 - 7:30am

Would depend on the fund performance. That is on the lower side, but it depends how they use that title. Just remember that "MD" won't mean the same across industries (and even firms within the same industry). Here it could just mean a more senior manager. Anyway, at HFs the comp at that level is almost always heavily tilted toward performance. So I usually see 500-750k base and then highly variable bonus. But I would normally guess ~$1.5mm for an average year for a "junior/mid" MD. 

Dec 15, 2021 - 8:04am

They have three main funds from what I understand. A multistrategy fund that does senior secured distressed debt, l/s equity, l/s credit and risk arbitrage. Then they have a dedicated distressed debt hedge fund that focuses more on fulcrum type securities in distressed and then they have special situations pe type fund that can invest in pretty much anything from distressed for control to more esoteric illiquid stuff

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  • 1
  • Investment Analyst in HF - EquityHedge
May 18, 2021 - 3:05am

DK - large? yes. well-performing? that's subjective...

They/ve tended to return MSD%...up to you if you consider that impressive. 

Outside of the HFs doing tech/privates, big hitters are hard to come by, esp on scale so I'm not trying to knock on MSD, but its just not what most would consider impressive.

  • Associate 2 in RE - Comm
May 21, 2021 - 12:16am

Wow at a fund returning 6.5% per annum paying as well as they do (referencing the comp figures from the other posters)

  • Principal in RE - Comm
May 19, 2021 - 5:01am

Anyone knows if there's been departures recently at the associate / senior associate levels?

  • Associate 1 in IB-M&A
May 21, 2021 - 9:24am

Honestly as one of the posters said above - if you had not been a tmt/consumer fund over the past 10 years, have there been any >$10b funds consistently doing double digit returns? Cant think of that many outside of the platforms.

Dec 10, 2021 - 12:23pm

silverpoint has a 10% CAGR over the past decade after this year

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  • Research Associate in HF - Event
Dec 15, 2021 - 3:46am

Lmao2018

silverpoint has a 10% CAGR over the past decade after this year

you said "have there been any >$10b funds consistently doing double digit returns?" and I gave you an answer. But yes, it is good if you assume a benchmark of HYG and presumably a lower sharpe ratio. I'm not aware of many other value and/or distressed funds with similar performance over the last 10 years

To clarify, a higher sharpe ratio than HYG. Over the last decade HYG has a total return CAGR of 6.7%. If the fund is at a 10% CAGR (really it's closer to 12% or so I think) then it's crushing the benchmark, which is very good, and realistically much better performance than the vast majority of TMT funds (obviously those funds picked a better asset class).

Except they're not taking more risk than HYG. They hedge out above certain exposure levels. The sharpe is higher

lol that's not at all how the portfolio is managed there. The true beta to HYG is always well below HYG. Makes the alpha even higher

Opposed to the multitude of firms you'd work for free at? Lol. You couldn't pay them to let you work there is the better way of using that phrase. 

Silver Point Capital Offshore, Ltd:
2002: 3.4%
2003: 48.2%
2004: 25.8%
2005: 11.3%
2006: 16.7%
2007: 4.8%
2008: -32.3%
2009: 50.8%
2010: 21.4%
2011: 2.4%
2012: 18.2%
2013: 16.4%
2014: 2.3%
2015: -0.9%
2016: 10.4%
2017: 7.4%
2018: 0.6%
2019: 3.7%

3 / 5 / 10 year annualized returns being a LP of the Offshore Fund:
5/31/2020: 1.3% / 3.1% / 6.4%
12/31/2019: 3.9% / 4.2% / 7.9%
12/31/2018: 6.1% / 3.9% / 12.2%
12/31/2017: 5.6% / 7.0% / 7.7%
12/31/2016: 3.8% / 9.0% / 7.2%*
12/31/2015: 5.7% / 7.4% / 6.8%*
*since Nov-07 instead of 10-yr

omg wow so good much alpha over TMT fund!!! No one gives a shit about 10-year returns by the way.

  • Intern in IB - Restr
Dec 11, 2021 - 11:39am

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  • Intern in IB - Gen
Dec 12, 2021 - 3:30pm

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