So much for the "stellar distressed shop". Interesting to watch the large giants like BlueMountain and Anchorage turn into mostly CLO shops because of poor returns in their high-fee vehicles and outsized% of NAV bets in investments gone wrong. https://www.wsj.com/articles/its-no-time-to-die-f…
11 Oct 2020
One of the most popular stories from the GFC was from those that made incredible money on the recovery. To hear them tell it, distressed investing was simply finding formerly strong companies that had taken a hit during the crisis, picking up their equity at bargain prices, and riding the wave up as their markets came back to life and the investments prospered. Anyone calm enough to stay liquid and buy at the right time could make a mint. Talk about rose-colored glasses. I remember very logical, educated people arguing that the capital markets had been permanently damaged, and the global
09 Apr 2020
Does anyone know the performance of credit/special-situation shops this year? Did COVID and recovery help or ruin them? Many seemed to struggle already prior to the COVID (Solus, BlueMountain, King Street losing many senior folks).
20 Sep 2020
Hello monkeys, I wanted to get an impression on the best restructuring experience in London in terms of skill building and exit opps. I assume that specialist programs like Evercore/HL/RS prep analyst better for distressed roles than generalist places like PJT/Laz/Moelis, even though PJT is top notch in RX. Another thing that caught my attention after a quick linkedin search is that the London offices of Oaktree and other loan to own / distressed for control places hire mostly from GS/MS and not candidates from restructuring backgrounds. Is this simply a statistical phenomenon since the
04 Jun 2018
Hi all! I was curious to learn more about the debt fund or direct lending recruitment process, if it's on the same timeline as PE, and what to expect in the process. Currently, I'm at a BB group that specializes in underwriting leveraged loans (mostly sponsor deals, acquisition financing, and recapitalizations), which includes a lot of work in exchanging and negotiating grids and credit documents with the client. It doesn't involve any modeling. Can anyone please shed some light on where I would stand or what the process looks like in general?
26 Aug 2019
Hi fellow monkeys, title says it all - I have heard this guys are pretty smart and aggressive and would be curious to see what they have done in the distressed debt space in the tech sector. I have heard they have a distressed angle though not sure if they traditionally approach it through the debt or through the equity, some trade names or case studies you could point me to would be useful. Thanks
29 Jan 2020
Currently in a process to lateral to a mid-tier Rx group [Greenhill, Gugg, Jefferies, Rothschild]. What would potential exits from one of these groups look like? MF Credit? MM Credit? Distressed? Growth Equity? PE?
14 Feb 2021
Does anyone know of managers doing distressed funds with an HF-style strategy (using PBs - for shorting, margin etc. - and ISDAs), but putting it in the kind of close-ended, drawdown fund usually used by PE managers, with capital locked up for X years? I think maybe Davidson Kempner's Long-Term Distressed funds did this (their older ones had PBs, for sure), and maybe others? I'm wondering how common this is, so I'd be very grateful for any info. My thinking is: - That kind of strategy needs cash on hand to support it. - Closed-ended LP structures can't get new cash - they raise money at the
29 Apr 2020
Have lurked on WSO on-and-off since pre-crisis days. Reading the material on here helped me get my first internship - time to give back. Happy to answer anything and everything. Quick background below. - Beginning third year as investment analyst at a $5B event-driven / distressed debt fund - Invest in global credit situations throughout the cycle (performing, defaulted, liq claims) across the cap structure (bank debt, HY bonds, busted converts, credit-themed equities) in all geographies (US, Europe, Asia, LatAm, etc) - Spent one year at elite boutique covering an industry - Ivy League
27 Apr 2014
Hello fellow monkeys, Out of curiosity, which one are the best RE funds in Europe at the moment? And also, what special situations/ NPL funds are there in Europe? I was thinking along the lines of BX RE Debt, Cerberus but not many other names come to mind. If one would like to end up in a real estate fund in Europe with a very broad mandate (looking at acquisitions from debt and equity side etc.) what kind of background/programs are traditional for this? Thanks in advance!
05 Apr 2018
I did 1 year at one of the top restructuring shops (BX, HL, Moelis etc) and then moved on to a credit fund. I've been here for 1.5 years and love every minute of it. We've historically focused on the distressed/special sits (control and non-control) space but given the drought of opportunities (in our opinion, some funds would disagree) out there we've expanded our investment mandate and now also look at performing HY/leveraged loans. I remember when I was still in IB I found it hard to get info on how buyside recruiting/buyside life works in London as most of the info on the internet is
22 Dec 2014
PIMCO's high yield credit/corporate distressed team manages funds with a private equity structure and focuses on investing in corporate opportunities across stressed/distressed corporate bonds and bank loans, direct lending, rescue financings, post-reorg equity, and other illiquid corporate securities. Was wondering if anyone had any additional information about this team within PIMCO. Do they operate as a hedge fund and have a hedge fund fee structure? If so, how does this fund compare to other Distressed/Credit funds, and is the analyst comp/culture comparable? Any thoughts or knowledge on
01 Dec 2020
I am in the process of interviewing for a distressed & special situations (DSS) role focused on real estate with a megafund. Although I am experienced within real estate (spent the last couple of years working across asset classes in investment management with a top 10 REPE firm) I am curious as to why I was selected to interview for the role given my lack of a restructuring/banking background, but am very excited by the opportunity to expand my skillset. A couple of questions for the people of WSO: 1. Why would a DSS group be interested in recruiting someone with real estate asset level
03 Nov 2020
Does anyone know anything about this firm? Deal flow, culture, comp, exit ops, etc? I have been looking online and can't find much. Seems to be RX focused with a decent amount of deals done recently.
29 Nov 2020
Hi, what book (books) would you consider a must-read for anybody who is planning to buy a distressed business and try to bring it back to life? (I am aware that real methods can come just from experience, but any sources that will provide some insight on the restructuring process would be of great help.) Thank you!
20 Mar 2018
Does anyone have any insight on this group? There seems to be little to no information out there apart from their website. Topics of interest include mandate, performance, comp, hours, etc.
20 Oct 2018
What's the word on this hedge fund run by Paul Singer? They seem almost as secretive as Rentech. Anyone who has information to share - I would appreciate hearing it. Thanks...
01 Apr 2009
Hi guys, this is my first post so I hope I am posting this in the correct place. I have an upcoming interview with a predominately structured credit (CLOs etc.) focused hedge fund, although they also invest in stressed and distressed special situations credit opportunities. I have been researching the different products surrounding these but one of my main worries for the interview is that they will ask me for my current investment ideas in the space. As this is a graduate position and I have no previous experience in this space I am struggling with this quite a bit. I was hoping that someone
12 Apr 2020
Hey y'all I was accepted to a top MSRED program (MIT/Columbia/Cornell). I have a few years of work experience at a boutique development shop doing some pretty unusual/interesting developments in the US and Japan. I recently read Moyer after a friend recommended it and I'm extremely interested in looking at a career in distressed Debt. I have some awesome experience in development, but lack deep financial skills. The MSRED program gives me access to B school at the university and a number of really solid electives relevant to distressed debt plus that rigorous financial and valuation
09 Apr 2019
Anybody have a view on Unit Corp? In the last few months it's attempted to exchange $650mm of subordinated notes for 73 cents on the dollar of 2nd lien debt with a 10% coupon or 100 cents on the dollar of 3rd lien debt with a 7% coupon in an attempt to term out its maturities to 2024 from 2021 or it will trigger a default under its revolver. The only 1st lien debt on the balance sheet is a bit over a $100mm in revolver draws with annualized EBITDA (including impairments) of $251mm from the last 10Q that puts 1st lien leverage at about .53x EBITDA. The bonds are trading at about 43 cents on the
27 Jan 2020
Hello everyone, Europe has been seeing the emergence of covenant lite/covenant none financing since 2011/2012, maybe even longer and I was wondering what this will mean for the distressed investor. Since many of distressed for control plays are based on companies that are inherently healthy companies that default on covenants due to cyclical reasons or other reasons, will this mean that we will see less defaults of healthy companies due to covenant breach and more defaults due to failure to service interest/debt? If yes, what does this mean for different types of distressed investors? For
20 May 2018
New account for this one. Curious how many credits / investments you cover, ie currently invested in? What is a normal range per analyst. How does it differ per strategy? Distressed/HY/Leverage Loan/CLO/IG/equities? Also does it differ based on industry analyst vs generalist?
17 Sep 2015
Does anyone have the updated year-to-date league table for restructuring/distressed debt? Really curious to know if anyone is having a stand-out year so far?
02 Sep 2019
Hoist Finance is a Swedish financial services company. Hoist Finance is active in eleven European countries and specializes in the acquisition and management of non-performing consumer loans.
14 Apr 2021
Fellow monkeys, I'm a banking analyst here in London and I am trying to make up my mind on which route I want to go down post-banking. Unlike many others I haven't really hated my time in banking as I have learned a ton and worked with great people and even W/L wasn't too bad (of course still far from a normal schedule). Anyway, I want to leave the sellside and be on the decision side and actually (help) decide on investments.However, I'm having trouble on deciding which route to go down. Let's just assume a perfect (but unlikely) world where it is possible to get offers from all desired exit
24 Feb 2015
It is fairly common for the unsecured debt holders to end up controlling the equity as part of a restructuring. 1. Does this ever happen with small companies? Can
30 Jun 2011
Recently came across a role (missed the boat on the application) that was focused on credit fund investments throughout various strategies (private lending, distressed, special situations). The role entails investing in credit funds, meeting with fund managers, diligence on credit fund strategy, monitoring past investments. Hoping to open the floor to anyone with any experience in this type of role to provide an understanding of how one goes about: understanding a credit fund assessing a fund manager modelling cash flows of various credit fund strategies (i.e, how does do cash flows from a
28 Mar 2021
Can someone help me understand how to go through some specific calculations for distressed debt (or point me to good resources for this)? For example, lets say a company has EV of $150, secured debt of $75 and $125 of unsecured debt. Hence, the unsecured debt is trading at 60 cents on the dollar (based on expected recovery of $75 / $125). If the company goes through a debt-for-equity swap and the unsecured investor ends up recovering $25 in cash and gets $75 in equity, what would the return / yield for the unsecured debt investor be?
03 Sep 2020
Hi, I might have an opportunity to go to a distressed debt HF but have many questions on this as very unfamiliar w debt investing (I come from a traditional BB IBD analyst background) - Do you still look at the industry? Try to anticipate trends? Do some qualitative analysis, read market / broker reports? Create operating models? Or is it only looking at BS / CF / legal analysis? I want to go to the buy side because i definitely have an investor mentality over selling some BS to clients but i want my ideas to come from a mix of financial and "soft" analysis (like you do in PE or value HF) - I feel there is a lot of legal stuff involved: is it somehow cool / manageable for someone who doesnt feel v interested in this?
12 Jul 2012
Hi Guys, Had some queries for people who are experienced in this area of expertise. I am a first year analyst at a top BB (think MS/GS etc.) and I work in DCM within the high grade sovereigns team. While initially interested in this sort of work, I have found myself more interested in the investing side with time. Unlike most people, I don't hold PE to be the end all and be all after my analyst years but I am interested in it similarly to being interested credit/distressed investing funds.
11 Apr 2011
Which US banks have distressed credit trading desks that hire interns/analysts? I will be graduating in December with a math major, interning in S&T this summer and looking for an off-cycle for the fall or FT position. (Disclaimer: my bank doesn't have a distressed team that I know of which is why I ask).
02 May 2020
Hi guys, I am a first year analyst at a BB, and I have grown more interested in distressed securities hedge funds and distressed private equity. It looks like the work would involve both value investing style analysis and dealing with, at times, complicated problems. I was hoping to get some advice from those in that industry or second year IB analysts who have interviewed on whether I should focus solely on recruiting for distressed funds or tell the headhunters I am more than willing to start at any PE / HF. Also, which is more relevant for distressed investing: traditional LBO PE or L/S equity HF (if I couldn't find a job in distressed debt / distressed PE to begin with)??
09 Nov 2012
I have spent the past several weeks looking for opportunities with credit funds (both performing and distressed). With little to no progress made, I think I need some advice on how to find opportunities, gain traction, land interviews, etc. Thanks in advance for any insight. Background I spent three years as a leveraged finance analyst and then jumped off to business school (a top 10 school). My b-school summer was spent with a small buyout shop. After finishing my MBA, I took a workout/restructuring opportunity with a company with a large portfolio of distressed credits. Two (very busy) years later now, and I am ready to jump into a role where I can help put money to work. Interests
19 Jul 2011
I posted this on the restructuring group forum but I might as well get everyone's opinion: I noticed that most of the MDs at places like HLHZ and Close Brothers had backgrounds in law or accounting. Seeing as I graduated last Spring, an analyst stint at a restructuring shop is not a possibility but I would like to position myself for an associate position a few years down the line. I went to college in the U.S. but I grew up in France so I would definitely like to shoot for firms in Europe (London). What do you think is the best background for someone trying to get in to a place like HLHZ? I'm planning on taking the LSATs in June but I'm also thinking of applying to Big 4 restructuring practices in London for the fall. Any suggestions?
07 Jan 2009
Hi everyone, I have an hour in-house modeling test and an hour in-person interview for Bayside coming up (First round). I was wondering if anyone has been through this process and knows what to expect? Thanks a lot in advance.
14 Mar 2016
I do not expect to get an answer to this, but you never know so i'll test how small the world really is! One of my favorite sites is Distressed debt investing, Does anyone on here know who is the guy running it? Needless to say bananas and lot's of thanks for an answer. http://www.distressed-debt-investing.com/
28 Jan 2012
Background in distressed debt investing. In at top B-school. Looking to recruit for restructuring boutique and wondering how recruiting for these shops differs from the BBs. Also any thoughts on what the demand is from these shops as the economy is beginning to subside. I realize there is still a huge backlog of restructuring yet to be worked out, but the growth rate is slowing substantially.
27 Apr 2010
Anyone have any thoughts on Miller Buckfire as a firm? Typical datapoints (ie comp, lifestyle, exit opps, etc) and/or any other relevant comments would be greatly appreciated. Thanks.
06 Dec 2009
Hi all, I'm a final year master's student based in Europe who's just received a return offer for a European BB Lev Fin group. I like the space a lot, and really like my team and think this would be a good place to begin a career. The catch is that I feel quite strongly that I want to look at distressed situations (either sellside RX or investing) at some point in future, partly because the situations look more interesting on a deal-to-deal basis, and because I want to develop a comprehensive understanding of capital structure beyond the context of an LBO. My prospective firm doesn't have a RX
29 Aug 2019
I'm looking to join associations, clubs or the like focusing on corporate restructurings, distressed investing, high yield and so on. Would appreciate people's recommendations!
11 Nov 2011
I watched an interview of George Schultze who says his company maintains a database of companies that they track into distress. In one post from Distressed Debt Investing he describes poring over any and all bankruptcy dockets 1) out of interest but 2) as a means of potentially uncovering a worthwhile opportunity. My question is: for those that work in distressed debt, how do you source investment opportunities? If it's not too proprietary, is there anything you could share that would give someone outside the business some insight into what is involved with the day-to-day process of finding
05 Jul 2017
What is the general reputation, pay, culture, exit ops, etc. of the credit arms of megafunds i.e. Sankaty, TPG Credit, KKR AM, etc.? Looking for information on a pre-MBA associate role. Any help or insight is much appreciated.
30 Apr 2013
Hi Everyone, I'm trying to understand how to find the fulcrum security for a distressed company and unsure where it is. I'm doing this for a PE distressed debt fund that wants to take ownership of the firm after bankruptcy. I understand the more senior debt holders get paid in full and the next tranche after that would get equity but what is considered a asset that is given to senior debt holders? I thought maybe it was all the assets of the firms but then the equity would be meaningless because the company would not be a going concern. If the company is a going to remain in operation what do the senior debt holders actually get that wouldn't destroy the firm? or am I taking the complete wrong approach to figure out the fulcrum security? Thanks!
29 Aug 2012
How common is it for analysts at distressed PE shops (think Apollo or Cerberus) to move to a HF at the end of their two-year stint? Are they limited to distressed-focused HFs, or can they move to L/S, event-driven, and other types of funds? From what I've heard, the modeling skills and knowledge of corporate restructurings that an analyst acquires/hones at one of these PE shops are the primary takeaways from their two years there. I'm also wondering where these skills are most transferable in the HF world-- which HFs tend to seek out these PE analysts? Thanks.
30 May 2012
I'm preparing for an interview with a REPE Debt Fund (hence my prior posting regarding this topic). I was curious to know what types of financial models are typically used. The folks I'm interviewing with typically purchase portfolios of distressed assets, rarely individual properties. Does anyone have knowledge or experience regarding what specific types of excel models will be typically used in this niche field of REPE?
07 May 2013
Does anyone know anything about Aurelius? The only things I've found on them is that they're $2bn AUM and they're involved in the Ambac situation. I saw that someone asked about them earlier this year, but no responses.
02 Sep 2010
All: Don't mean to exploit a bad situation, as my heart goes out to those affected in Japan. However, I stood prudent while friends made money on past events such as Greece, Ireland, etc. When and where to put money in Japan?
15 Mar 2011
Which option would you choose if you wanted to have better exit ops to hedge funds and top MBA chances. 1) BB Restructuring Group - does internal advisory on distressed situations. 2) Private Equity Real Estate Fund = about 12 ppl, make mezzanine investments. I like real estate, but more like a hobby than career - I'm more passionate about distressed credit. However, working for the PERE would provide strong investing experience. I would have to give up great network, exposure and brand name of the BB. I did my +/- analysis, but which one do you think is a better opportunity. Thanks all.
07 Jan 2012
how hard is it to learn distressed debt? my goal is to go to a distressed/special situations hedge fund, and i'm in ER right now. ER doesn't really prepare you for this so i wanted to see what thoughts people had. [let me preempt anyone who says it can't be done from ER. I realize it's harder than with other backgrounds but I think it's worth a shot to pursue.] i'm guessing everyone will say read "distressed debt analysis," but what else can does everyone suggest? what will interviews be like? is there anyone in this kind of shop who can comment on what it's like?
09 Mar 2011