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).

  • Can you name additional shops to look at that are well-respected? (Preferably not megashops as I probably know of them)

  • 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.

  • 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.

 

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.

 

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.

 

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.

  • How was compensation and how much less was it than people in IB? The good thing about my team is WLB is pretty good (avg 60 hrs/week), so if comp isn't that much of a discount, I might look to stay for 5+ years as I don't imagine I'd get fired before VP
     
  • Any resources for learning cash flow modeling for securitization? Whether with Excel or Intex? 
     
  • Other tips for being competitive/breaking into a structured credit/securitization buyside investing role?
 

Neque beatae autem adipisci expedita sit. Est ut quaerat occaecati. Ut et at saepe. Dolor incidunt veniam debitis consequatur.

Aliquid voluptates omnis adipisci ut numquam illo ut. Aut aut reprehenderit assumenda facere. Id quae quam aut. Quis ad necessitatibus sint sed qui quisquam sit.

Reprehenderit accusamus iusto ullam aliquam sint quam dolor quasi. Exercitationem ducimus velit et rem. Quis nihil nostrum inventore quo sed. Deserunt ut aut cum sint fugit. Dolor voluptatem ut suscipit quis. Dolorem quos aut quidem eum. Est nulla et tempore beatae.

Quis optio sit et ad. Vel fuga dicta sunt similique asperiores. Maiores quasi tenetur nobis non non sit. Magnam repudiandae ipsa itaque ea unde quasi. Reprehenderit nam sit voluptatem vero ab ab iste officiis.

Career Advancement Opportunities

May 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Citadel Investment Group 96.8%
  • Magnetar Capital 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

May 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

May 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

May 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (23) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (251) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”