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)
Bump
Mr 305
Maranon, Golub and Deerpath are all solid, but the latter are primary senior/unitranche lenders. Just understand the difference between that and mezz.
Monroe, Madison Capital Funding, Prudential, Gladstone are also good, active names to target.
bump
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.
What kind of comp (base + bonus), on average, are we looking at for 1st year associates at these types of funds?
For chicago, i would imagine 150-200k all in. Split probably ranges from 50/50 to 2/3 base 1/3 bonus
I would actually say higher, a few of these programs have analyst programs (golub, Ares) that are paying $120-$150, so associate pay would be $200+, Ares pays first year associates $225-250k
Very interesting on the non MBA part. + 1sb
Mr 305
What is the work like at the analyst/associate level? Is it a lot of pitching or more live deal work? I'd assume a lot of the work entails estimating EV since these are cash flow based loans, along with structuring the debt?...
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
Antares and Ares Direct Lending both have offices in Chicago as well
Anyone know what headhunters these firms tend to use?
Connect Search is one
Found three more: Northleaf Capital - spinout of CIBC. Barings, and Adams Street Partners have an arm.
Mr 305
any info on hcm?
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?
Any insight on deerpath? Do they generally higher IB analysts so pay is higher?
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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