GS Special situations group (SSG)

sa-jue's picture
Rank: Senior Orangutan | 493

Wonder if anyone knows GS SSG strategy in more detail, ie do they invest across asset classes / industries / regions, is it trading or buy-and-hold orientated, what is the culture and comp like vs large cap HFs - thanks

Comments (7)

May 25, 2018

Don't have any experience with the group but reading into it;
Across asset classes; sort of. They are essentially lenders, so the asset classes will be equity and credit, in all parts of the cap stack - equity, mezz, senior, sub, converts, etc and securitized debt in both Private and public companies, across industries but energy and real estate are specifically mentioned. Being a lender means it is a buy-and-hold strategy, they will be aiming for a catalyst before they sell. I would assume that because they are a "special situations" group that they are buying companies near bankruptcy, so cheap equity or debt for cents on the dollar. Being GS they will probably put a board member into the firm or sit on the creditor committee in order to drive any restructurings before they sell out.

Can't talk about culture or comp versus HFs, but it is meant to be a very prestigious group, basically doing its own thing within GS so I would expect comp to be very similar to a top tier HF

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May 25, 2018

why would you comment if the first sentence is a disclaimer that you dont know the situation. Being a lender means its buy and hold? what the hell does that mean?

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May 25, 2018
LDNBNKR:

being a lender means its buy and hold?

i know that sentence doesnt make much sense now i think about it but basically just saying that special sit lenders are buying a security with the aim of taking it from ~0c on the $ back to par, or somewhere in between to sell to the stressed credit funds, and from buy-in to sell the process can take a few years, so this is a "buy-and-hold" strategy, and nothing like a more trading orientated fund (macro, tail protection products, arbitrage etc)

The second bit is referring to the fact that large distressed/special sits funds are generally quite activist and will hire someone to sit on the board (when owning equity) or will sit on the creditor committee. I was referring more to the equity side here since they will most likely take on someone external (whereas creditor committee the investment team can do it themselves) and "being GS" they have a large infrastructure and network they can leverage to get the right guy for the job.

Anyway, what is your understanding of the fund? I'm trying to provide some insight based on comparing what they do to well known special situation hedge funds.

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May 25, 2018

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May 25, 2018

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May 25, 2018

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Jun 1, 2018
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