Thoughts on Silverpoint Capital?

How are SPC's performance and culture/comp in recent years? And their investment mandate? I noticed they have several guys in Chicago for direct lending or MM PE, and they also hired some analysts with real estate debt background?

Also, it's one of the few distressed funds hiring undergrad kids. From junior analyst level, how is Silverpoint's analyst experience comparing with other established distressed debt players like Oaktree, GSO, Bain Cap Credit, Centerbridge, Cerberus, York, Avenue, KKR SSG, TPG Sixth Street and Carlyle Strategic Partners?

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Comments (25)

Best Response
Apr 27, 2018

Talked to a few of the people at the firm over the summer, and it seems their mandate covers both distressed debt and equities (though the latter comprises a much smaller portion of their allocation... say ~10-15%). More importantly, analysts are thrown into a brutal learning curve that I think is perceived as a healthy challenge. Work is not really compartmentalized from my understanding -- everyone needs to be simultaneously well-versed in bankruptcy law, FI, equities, etc. As for comp figure, you can PM me for the details since I know two people of different graduation years going there out of college.

Lastly, I think they're actually considered favorable to the firms you mentioned at my undergrad since many of the intellectually hungry are looking to go into RX or distressed. They only recruit one person per year, period. That one person usually comes from one particular school, and the recruits have a tendency to have 4.0s (just an observation).

    • 6
Apr 27, 2018

They take 0-2 people a year, but yeah, it's basically the top one or two kids from Wharton. Everyone who goes there seems to have had a ton of other opportunities, but it's perceived as the best.

    • 3
Jan 10, 2019
Extraordinarily Dry Tuna Sandwich:

Talked to a few of the people at the firm over the summer, and it seems their mandate covers both distressed debt and equities (though the latter comprises a much smaller portion of their allocation... say ~10-15%). More importantly, analysts are thrown into a brutal learning curve that I think is perceived as a healthy challenge. Work is not really compartmentalized from my understanding -- everyone needs to be simultaneously well-versed in bankruptcy law, FI, equities, etc. As for comp figure, you can PM me for the details since I know two people of different graduation years going there out of college.

Lastly, I think they're actually considered favorable to the firms you mentioned at my undergrad since many of the intellectually hungry are looking to go into RX or distressed. They only recruit one person per year, period. That one person usually comes from one particular school, and the recruits have a tendency to have 4.0s (just an observation).

Why not just post the comps instead of being bombarded w/ PMs?

I don't understand the secrecy around income. I cannot see the downside in transparency, especially on this website.

Apr 27, 2018

Probably the top place to go out of Wharton. Know a couple guys there from my year and interviewed with them several years ago. PM me if you want.

    • 5
Apr 28, 2018

Interested as well.

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Apr 28, 2018

Top. You don't need "exits" there once you get there and stay. It is the exit. Historically taken kids from top rx groups and buy sides as well as 0-2 wharton undergrads every year.

    • 4
Apr 28, 2018

They also take tons of kids from BBs, bunch of analysts from JPM, Barclays etc.

    • 4
Apr 28, 2018

I don't think that's true on the public side. They do take from BB on occasion, but it's generally top groups and only one or two a year.

They also have a private credit team, and that's probably where you see the people from more varied places.

    • 4
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Apr 28, 2018

in what regard?

Apr 28, 2018

I would be interested in the performance of the fund and relative prestige compared to other distressed funds.

Apr 28, 2018

The public or private side?

Apr 28, 2018

should have been more specific. The private side.

Apr 28, 2018

have a great infrastructure set up on the lending side and they are as good/best in the business at it and restructuring companies. Public side still more interesting and has higher IRR target/tougher to get into and I think is much more interesting. In my mind, I might as well do private equity if I am going to do middle market lending (no matter how interesting/risky the companies or the funky debt structures that you see)

Apr 28, 2018

Someone care to explain the difference between public and private side?

Apr 28, 2018

is investing in public securities, at SilverPoint its focus started with distressed debt (traded debt, but also anything in the cap structure including equities). Private side focuses on originating private deals (equity or debt, more emphasis on debt) with middle market companies that need capital (refinancing, liquidity needs, private equity, etc). Private side will usually take private, non-public information from companies and work with management to structure capital in appropriate manner, much more thorough and detail oriented than public side, but in some ways less opportunity than public side in terms of returns and opportunities, not to say that the private side guys don't make money and aren't really sharp credit guys. Public side is typical HF side (public markets investing), private side is much more like PE, but across cap structure.

Apr 28, 2018

Thanks

Apr 28, 2018

What would be the path for a current undergrad looking to get a FT job with Silverpoint's public side after graduation? I have heard they recruit some straight out of undergrad. What skills/background is needed to be a competitive applicant? And if not straight out of undergrad, then what as a first job to be put in a good position to go to this type of HF?

Apr 28, 2018

bumpppp

Apr 28, 2018

that they're going through/went through a restructuring themselves

The world has changed. And we must change with it.

I'm making it up as I go along.

Apr 28, 2018

care to elaborate?

Apr 28, 2018

bump

Apr 28, 2018

They recent cut a bunch of folks, and hired not a single person all year before the cuts. So it's tough to get in there.
They're founded by former Goldman guys so they mostly recruit from there. The private side does a lot of loan-to-own, meaning extending financing to troubled companies and converting it to equity through bankruptcy so they control the company post-bankruptcy.

    • 1
Jan 10, 2019
Apr 28, 2018