Insights

(Institutional Investor)
As investors rethink their private equity allocations, the PE secondaries market has benefited – reaching a new record of $57 billion through H1. As long as concerns about inflation, rising rates, the war in the Ukraine and impact of Covid remain, the Secondaries market will offer diversification, liquidity and should continue to thrive.

(McKinsey & Company) The state of diversity in US private equity. 
McKinsey & Company examine the efforts of PE firms to ensure a diverse workforce. The data shows that private equity firms have increased the percentage of ethnically diverse talent and women employees but note that promotions for women and deal-team diversity metrics are still lagging.

(FT.com) Fund houses buy up ‘alts’ specialists to move beyond equities and bonds
Following Oak Hill’s acquisition by T. Rowe and CarVal’s acquisition by AllianceBernstein, FT calls attention to fund managers’ drive to acquire private equity and private credit businesses. Higher management fee revenues and the demand for alternative strategies from private wealth channels are cited as driving forces.

Not included is First Eagle’s announced acquisition of the credit manager Napier Park, which follows earlier acquisitions of THL Credit and Newstar. The First Eagle acquisition highlights the driving force private equity sponsors are playing in asset management M&A and growth strategy.

How a global hedge fund diversified its trading desk.

Read and share this case study here (PDF). 

Mandate and Challenges

Our Client is one of the world’s foremost high-yield and distressed asset hedge funds. They have a longstanding commitment to excellence and the highest standards for hiring, but like many hedge funds, their trading team lacked diversity. They needed to hire a Junior Trader with cross-asset experience (credit and equity) and were committed to diversifying the team, but their initial search did not yield enough relevant candidates. The Company had no recruitment history with TLG but knew us by reputation.

Solution

After consulting with the Head of Trading, we were engaged on an exclusive basis to identify and hire a diverse, Junior Trader. Our strategy targeted two profiles:

• Rotational program graduates – candidates from top global banks who rotated through relevant credit and equity (or derivative) trading desks;
• Structured derivative traders – candidates with deeper experience trading structured equity and/or credit derivative products.

In both cases, TLG successfully leveraged existing relationships while developing new leads via referral and cold outreach.

Success

• Quick turnaround – within 1 week receiving the mandate, TLG presented a slate of 12 diversity candidates who matched the hiring manager’s criteria;
• High success rate – 6 of 12 (50%) candidates were selected and completed a rigorous interview process, including a technical case study and trading pitch;
• Top candidate – with the help of TLG, the Company offered and closed their top candidate less than 6 weeks after commencing the search. Both the candidate and the Client have communicated excellent feedback to TLG in the 4 months after the hire.

Sean Locke is Managing Partner and Founder of TLG | slocke@locke-group.com

The Locke Group (TLG) is a specialist executive search firm which has served the financial industry since 2003. As a boutique, we are deeply invested in our clients – our care for their experience and the experience of their candidates is second to none – and we possess both the strength and flexibility to deliver results which help to power their business.

Working together to land a Direct Lending Associate

Read and share this case study here (PDF)

Mandate and Challenges

Our Client is an independent asset manager who is scaling and diversifying their business to remain competitive with larger fund companies. They have made multiple acquisitions in Alternative Credit and in July 2020, the Company decided to make its first outside hire under its own brand – a Direct Lending Associate. They faced several challenges:

• Rebranding – after the rebranding, the Company was still establishing its name in Alternative Credit and Direct Lending
• Intense competition – the Alternative Credit industry was booming. The Company faced stiff competition from larger competitors for new talent
• High standards – maintaining the same high standards for hiring, despite rebranding and high competition
• COVID-19 – they were forced to interview and make selections remotely, while attempting to convince candidates to make a career change mid-year, amidst the uncertainty of the COVID-19 pandemic.

Solution

TLG was hired for its ability to quickly reach top passive talent in Leveraged Finance groups at leading banks. We tapped our existing network of candidates from a mix of global banks and top boutiques and crafted our message as follows:

• Impact – joining a leaner, more collaborative team would offer more responsibility and the opportunity to make a greater impact
• Visibility – similarly, the lean deal-team offered visibility to senior stakeholders, clients, and therefore more opportunities for professional development.

Success

The message was well received. Within 48 hours of commencing the search, TLG contacted, interviewed, and presented 9 candidates from leading Leveraged Finance teams. 6 were selected for interview, including 3 diversity candidates (50%). The Company identified two finalists who met their standards, fit their culture, and they hired their top choice within 60 days of contacting TLG.

Sean Locke is Managing Partner and Founder of TLG | slocke@locke-group.com

The Locke Group (TLG) is a specialist executive search firm which has served the financial industry since 2003. As a boutique, we are deeply invested in our clients – our care for their experience and the experience of their candidates is second to none – and we possess both the strength and flexibility to deliver results which help to power their business.