Debt Funds in Chicago

What is WSO's take on some of the Debt funds in Chicago?
What is the career path like? Skills that one would obtain working at one vs traditional buyside? Will I become the queen/king of debt? Thoughts on comp and hours?

Maranon Capital
Hancock Capital Management
Golub
Midwest Mezzanine Funds
Deerpath Capital

Others?

Comments (32)

 
Most Helpful
Aug 14, 2018 - 2:30pm

Bump - Learned some new info, many debt funds don't kick out people after their associate stint and will promote without an MBA. Looking at the debt story vs the equity story is the biggest difference against traditional buyside, but many of the firms you listed also invest mezzanine and equity so you get both experiences. You won't be making any operational improvements/changes at a debt shop. Comp is slightly lower all-in than traditional buyout depending on the fund, but still very competitive as they recruit primarily IB analysts. If you enjoy looking at capital structure and finding the optimal leverage and pricing debt, then it should definitely be something to look into. Hours are not bad average of 55-60, with the occasional 70-80 hour week when deals are closing.

 
Aug 15, 2018 - 11:00pm

Depends on the firm and the different strategies they provide, but from an analyst/associate role it would be sending back signed NDA's, screening new CIM's that come in from sponsors or investment banks, providing a leverage and pricing read based on various components, screening through investment committee if leverage/pricing is competitive, issuing a term sheet, going through various due diligence processes, management presentations, etc. and finally screening at a final investment committee, portfolio work is also apart of analyst/associate work, monitoring current investments/add-ons and modeling at various stages with a specific focus on free cash flow generation rather than IRR and MOIC

 
Sep 16, 2018 - 1:27pm

Found three more: Northleaf Capital - spinout of CIBC. Barings, and Adams Street Partners have an arm.

Mr 305

 
Nov 19, 2019 - 6:57am

Little Sheep:

What is WSO's take on some of the Debt funds in Chicago?
What is the career path like? Skills that one would obtain working at one vs traditional buyside? Will I become the queen/king of debt? Thoughts on comp and hours?

Maranon Capital
Hancock Capital Management
Golub
Midwest Mezzanine Funds
Deerpath Capital

Others?

any info on hcm?

 
  • Incoming Analyst in IB - Ind
Apr 21, 2020 - 3:55am

Sorry to bump an old thread- do these funds follow the same timeline for recruiting as PE firms do? Also does one have to be in a LevFin group to recruit for a buy side debt shop? Or do coverage bankers also see opportunities?

 
  • Analyst 1 in IB - Ind
Feb 23, 2021 - 9:40am

Any insight on deerpath? Do they generally higher IB analysts so pay is higher? 

 
Feb 27, 2021 - 11:08am

Never got an interview from the HH, my coworker applied as well and same thing 2 years ago. So no salary info

Mr 305

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