Does anyone know much about Viking Global's expansion into credit? I know they previously tried 10-15 years ago, but would be great to hear what this is targeting across HY/loans/distressed/value equities, etc as it is fairly new.. Any input is appreciated.
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They hired an analyst from King St. They haven't really done credit since 2010.
So you got that email from Dynamics Search too hahahaha.
I’m sure pay can be out of this world, but question if they’re committed to credit long term given their false starts in the past. It’s an equity shop through and through, credit is an ugly stepchild to them basically, despite the pristine sweaty Tiger Cub brand name.
I don't think I'd be so negative to say that "credit is an ugly stepchild" and there's a reason they're relaunching a credit arm. Wonder if/what pay difference would be versus equities though
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It’s likely not really comparable. What someone is asked to do at Viking credit is totally different - it’s less about leading restructurings, they have fewer credit in-house credit resources, etc, but more about finding and capitalizing on the best opportunities in credit. Viking equities surely pays more, but it’s much less stable platform for analysts than a firm like Silver Point. If you’re going to do credit then it’s likely better to go to a firm specializing in it, at least while you’re young.
This is being run by Pat Dowd, who is definitely a real person. He had a great run at King Street - my understanding is that there was some uncertainty after Fran Biondi retired, but they are back in the market for fundraising, so he could have stayed and enjoyed a relatively comfortable senior role at an very established platform.
He hired one person out of GSO to be his right hand person, and I heard they are looking for one more VP type person (capable of generating P/L) and one associate (workhorse/junior).
With regards to Viking, this would not be the first time one of these platforms has expanded into credit and is part of a broader theme of platforms shifting into multi-asset in order to maximize returns. It's generally inefficient for platforms with great sourcing and relationships (i.e. Viking) to pass on credit opportunities simply because they don't have 5 - 10 people on staff who know how to negotiate a loan doc. This is the same theme you see at Sycamore, it happened at GSO, and will continue to happen throughout the industry.
My understanding is that the credit team is investing out of the master fund and gets approval on a position by position basis. This is fine and par for the course for a new team/strategy, but potentially dangerous in the long run as there is no dedicated pool of capital/fee stream to anchor the team. There probably is an intent to raise one, but it'd probably take a year and a lot of opportunistic capital (e.g. Owl Rock opportunistic, Sixth Street, etc.) was raised during 2020 and early 2021, so I'm not sure how the market reception will be.
The danger with these roles is that Viking isn't really a credit firm and may decide 1-2 years down the line it's easier just to focus on purely equities (especially if equity returns are strong), so they wind down the arm and everyone involved is back to square one. However, this team is a great opportunity for 99% of individuals on the street; great firm, great resources, great team and the chance to get in on the ground level.
Do you know what strategy within credit they are focused on?
Would guess BBIO since the stock was down 70% yesterday and the converts are in the 40s.
Bump curious how big their credkt fund is vs equities. Also what strategy within credit? Not distressed right?
from a 2010 article on Viking - looks like they hired an Elliott analyst as PM of "distressed / credit" who had mediocre performance in the crisis, who then left the industry after they disbanded the team, and he now does VC.
https://www.reuters.com/article/smartmoney-viking/smart-money-profile-v…
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