Dec 05, 2023

Top Opportunistic / Capital Solutions Credit Funds

Who are the top funds in the opportunistic credit space? Specifically interested in players that get involved in hairy situations, focus on non-sponsored deal flow, can invest across the capital structure, and have a PE-like robust diligence process. Thinking along the lines of HPS and Sixth Street but smaller.

 

Based on the most helpful WSO content, some of the top funds in the opportunistic credit space that focus on non-sponsored deal flow, can invest across the capital structure, and have a PE-like robust diligence process include:

  1. York Capital Management
  2. Anchorage
  3. Apollo
  4. Bain Capital Credit
  5. Canyon
  6. CQS
  7. Davidson Kempner
  8. DE Shaw
  9. Elliott Management
  10. GSO Blackstone
  11. King Street
  12. Oak Hill
  13. Oaktree
  14. Sculptor (formerly known as Och-Ziff)

These funds are known for their excellent structuring skills, finding the right spot in the capital stack, and going through the intricacies of each particular deal point with a fine-tooth comb. Many of the best credit investors in these funds have law degrees.

However, it's important to note that the opportunities in these funds can depend a lot on the organizational structure of the fund. For example, in funds that manage origination and portfolio management responsibilities separately, the opportunities may be more limited, within the parameters of the responsibilities you had previously held.

Remember, investing is a bit of a philosophical endeavor as well. As Dan Loeb said, "In order to be a really good investor, you need to be a little bit of a philosopher as well." So, keep that in mind as you explore these opportunities.

Sources: https://www.wallstreetoasis.com/forum/private-equity/qa-non-target-top-bucket-ssg-private-creditdirect-lending?customgpt=1, Good credit funds?, Credit Hedge Fund opportunities

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Based on the most helpful WSO content, some of the top funds in the opportunistic credit space that are known for their robust due diligence process and ability to invest across the capital structure include:

  1. Anchorage Capital Group
  2. Apollo Global Management
  3. Bain Capital Credit
  4. Canyon Partners
  5. CQS
  6. Davidson Kempner
  7. D. E. Shaw
  8. Elliott Management
  9. GSO / Blackstone
  10. HPS Investment Partners
  11. King Street
  12. Oak Hill
  13. Oaktree Capital Group
  14. Sculptor / Och-Z

These funds are known for their ability to navigate complex situations and focus on non-sponsored deal flow. However, it's important to note that the size of these funds can vary, and some may be larger than HPS and Sixth Street.

Sources: Good credit funds?, Most active credit shops in the market?, Credit Hedge Fund opportunities

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

MSD does a ton of interesting stuff.
Every megafund has a fund or strategy dedicated to the “interesting” stuff.

Mezz lending was considered boring 5-10yrs ago since it was done by credit guys. Now the PE guys do it but call it hybrid value, customized capital, strategic capital, tac opps, etc so sounds a lot sexier.

 

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