Structured/Securitized Credit HFs
Currently in a top 3 securitized products IB group. Looking for a few things on structured/securitized credit HFs or HFs with a significant allocation of AUM to structured credit. I know of some of the usual suspects and some smaller names (Goldentree, DavidsonKempner, Marathon, Gugg- GS Gamma, GSO, Oaktree, och-ziff, DoubleLine).
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Can you name additional shops to look at that are well-respected? (Preferably not megashops as I probably know of them)
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Also would like to know how comp in the first couple years looks like for someone joining one of these funds (as an associate?). Assuming they have about 2-4 years of non-HF experience.
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Do you think think IB is the best career path to get into a HF's investing team, or would trading (sell-side) or buy-side (i.e. bank principal investing team). I get that HFs are big buyers primarily of the subs/mezz/equity tranches so they're expecting their candidates to know their sh1t, which is one reason I'm not looking at large AMs or insurance company AM arms since they'd be the biggest buyers of the seniors.
Any/all info is appreciated.
Poetic Group, Bracebridge, Ellington, Tilden Park
Know Ellington and Bracebridge, not the other 2. Thanks!
Edit: Could you speak to the other 2 questions?
Victory Park, Atalaya Capital, Angel Island Capital, Castelake, Varde, etc. All do a fair amount of securitized credit and financial asset investing
Know Victory Park, Atalaya, Castlelake and Varde. Thx for providing Angel Island. Can you speak to the other 2 questions?
Comp at these funds is very similar to that of a MM PE firm, usually between $200-$250. The larger the fund the higher it is within that range. Scales up nicely as well. Hours will be tough but still better than in PE.
Background for these shops is pretty expansive and there’s no cookie cutter path. Being in a RX Or LevFin IB provides a lot of option value given at the end of the day it is fundamental credit analysis whether it be cash flow or asset based lending. Have also seen people make the move from buy-side credit shops and principal investment arms (GSSL, MacCap Principal Finance, etc.). FIG IB also provides a well rounded experience for structured credit and asset based investing.
Depending on if you mean just hedge funds vs drawdown funds with the same strategies, would add any of Axonic, Varadero, Waterfall, Libremax, and Angelo Gordon. Then on the larger side KKR’s private asset-based within private credit, Fortress’s rediscount lending/some other credit strategies and the PE team that does NRZ, and Ares alternative credit. Likely missing some and will comment again if anything jumps to mind.
Thanks. Know Waterfall, Libremax, AnGo, and ofc Fortress and New Rez. I know of KKR and Ares structured credit biz as well. Haven't heard of Varadero or Axonic. Could you speak to the other 2 questions?
I’d tend to agree with mostly everything the other poster said w/r/t comp and backgrounds. On experience I’d say most people I’ve encountered at the more junior level have tended to come from more specifically structured/securitized backgrounds (mostly on the banking side but some trading) than Lev fin or otherwise. That said, you definitely see people with that background but who might have spent time at a more general special sits or flexible credit fund before moving to focus on more structured.
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I'm An1 in securitization and am considering trying to switch to IB. I don't come from a math/stats/programming background so all of the structuring & analytics is done by someone else (i.e. in my view no transferrable skills to structured credit buyside). Even broader, I'm not sure there are any transferrable skills/exit opps in general, which is why I'm considering IB.
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