Monarch Alternative Capital Info/Insight?

$5B distressed fund. Anyone know anything about them and their rep compared to DK, Baupost, York, Elliott, the usuals? Compensation? They seem unique in that they don’t really hire restructuring backgrounds (bar Weinstock’s son). Seem to take more from Bulge brackets and PE. Why is that? Also seem to have a bias for RE backgrounds and doesn’t look like they silo those guys into doing only RE work. Why is that?

 

They’ve got a really lean team and hire infrequently. I think upward mobility is a sell compared to some of the other hedge funds you mentioned. Some people have been jumping ship due to low returns, and people might get stuck at VP and have a hard time finding a way up. Not sure about comp.

As to your point on backgrounds, I’m curious as well. Did a quick Linkedin search and most of the NY hires are Bulge Brackets or MM/UMM PE. Hoping someone else could chime in on that.

 
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from my experience working on a deal we both led as steerco members, they like to bang out a lot of powerpoints and weinstock is regularly involved in processes. Maybe he likes PPT presentations that are more typical work flow from the PE/banker types...though more than likely they just have a tradition from older experienced folks that have a preference one way or the other.

The senior i worked with came from RX backgrounds for what it's worth.

Their AUM has been pretty stagnant and returns not great.

 

Thanks.

The guy they took who did rx was Weinstock’s son. Also the reason you didn’t get a look is probably because they weren’t hiring. Any success with other distressed hedge funds? I’m curious how it compares to recruiting from a restructuring group. Obviously pjt and hl send people to top distressed shops. Wondering if BB analysts can do the same if they wanted to do that over PE like most BB analysts.

 

I work at an LBO shop but have buddies at special sits PE firms so take this comment with a grain of salt:

My understanding is that the majority of Rx analysts are summa cum laudes from Harvard , wharton , other ivies so they tend to want to go to the funds that pay the most (ie, Silver Point, King Street Capital, Anchorage, Davidson Kempner). Monarch is much smaller than these 4 and has a lot of people so the compensation will likely be lower for a first year analyst which makes it a less attractive proposition. I think the Monarch investment analysts initially make less than MF / UMM PE. The folks that end up here do come from top tier schools and banking groups but they just aren't the "cream of the crop" if you will.

 

should update your profile then since you’re many years removed from being a prospect in IB so people will give your words more weight. I think if you can then yeah everyone wants to go into the big brand names but there just isn’t that many slots so lots of great people go elsewhere. DK seems to take people from interesting backgrounds that aren’t your typical ‘cream of the crop resumes’. KS and SPC maybe a little less so but still some variation. these are all dream slots but it’s important to remember there’s probably like 10 junior HF analysts in NYC total at like king street and similar numbers (maybe more at DK) at the others. so for the rep these firms have there’s an astoundingly small number of people actually working there in these nice gigs

 

It's funny that people still talk like this so many years after graduating. I remember my years ago at Wharton, kids would non-stop talk like this in just about anything. I guess if "cream of the crop" and "top tier schools / banks / MF / HF" is something in your past vocabulary, it probably still retains many years after

 

Have heard pretty average pay at DK as well but slightly higher than Monarch. Though it’s pretty comparable.

 

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