Strongest path to Distressed Debt HFs

12468086's picture
Rank: Neanderthal | 2,129

What is the strongest path to get into Distressed Debt investing? I've heard restructuring, Lev Finance and High-yield credit analysis are some of the go to's. Any other strong pathways into Distressed Debt orientated Hedge Funds?

Comments (5)

Apr 10, 2017

From my limited view, it is totally depended on the strategy.

  1. More PE or more HF like?
  2. Turnaround, rescue financing, loan to own, insolvency claims, NPLs on RE/Shipping/Aircraft,....

There is an overlap of course, but different strategies need a different Background.

But, you can not go with RX or some LevFin and maybe FIG/NRG/Transportation teams.

Apr 10, 2017

hey mate thanks for the response. More the Hedge Fund scene

Apr 10, 2017

I recruited straight to a distressed debt position from undergrad. I bought some of the relevant materials and put together some credit pitches and sent them around and got lucky.

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Best Response
Apr 11, 2017

Most I've seen come from M&A groups, strong RX shops (Evercore/Rothschild/Houli), banking +PE (2+2) or sometimes possible if coming from BB distressed desk. I have personally not seen analyst level lev fin guys exit directly into deep value or distressed HF. Feels like they mostly exist into performing credit or need to do a stint elsewhere before going into distressed.

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Jan 4, 2019