Key Takeaways
- • Distressed debt funds operating in London—including Centerbridge, Varde Partners, Ellington Capital Europe, MKP Capital Europe, Oaktree Capital, Lone Star, and CQS—are actively recruiting investment banking professionals from major Wall Street and global institutions, accelerating a trend that began in early 2014.
- • Lone Star has emerged as one of the most aggressive hirers of banking talent, recruiting Adrian Choo (former HSBC real estate strategist), Kambiz Nourbakhsh (12-year Goldman Sachs veteran and Mount Kellett Capital alumnus), and Alessandro Grande (ex-Nomura financial institutions analyst) between April and September 2014.
- • Distressed funds are targeting junior bankers with specialized expertise in restructuring, leveraged finance, and cross-asset macro capabilities; recent hires include Killian O'Connor from Morgan Stanley (macro sales) and Nick Leyhane from Barclays (investment risk management).
- • CQS recruited Simon Finn from Apollo Global Management to lead its new Principal Investments Group, signaling competition for distressed debt talent extends beyond traditional banking to rival hedge funds and alternative asset managers.
- • Additional distressed funds, including EdgeCrest Capital, are preparing to enter the London market and scale hiring once regulatory approval from the Financial Conduct Authority is secured.
Summary
Distressed debt funds have intensified recruitment efforts in London throughout 2014, targeting investment banking professionals from tier-one institutions including Goldman Sachs, Morgan Stanley, HSBC, Nomura, Barclays, and Apollo Global Management. This hiring acceleration represents a sustained trend that emerged earlier in the year, with junior bankers specializing in restructuring and leveraged finance reporting multiple competing offers from U.S.-based distressed funds establishing London operations.
Lone Star has positioned itself as the leading recruiter among distressed managers, securing three high-profile hires over a six-month period. In April, the firm hired Adrian Choo from HSBC's real estate strategy function. By August, Lone Star recruited Kambiz Nourbakhsh, who spent 12 years at Goldman Sachs before transitioning to Mount Kellett Capital—a multi-strategy hedge fund founded by Mark McGoldrick, the former head of Goldman's special situations business. Most recently in September, the fund brought aboard Alessandro Grande, previously an analyst in Nomura's financial institutions group. These acquisitions underscore Lone Star's systematic effort to build institutional-grade distressed debt capabilities.
Peer distressed managers are pursuing comparable strategies. CQS executed a notable lateral hire by recruiting Simon Finn from Apollo to establish and lead its new Principal Investments Group dedicated to distressed debt opportunities. MKP Capital hired Killian O'Connor, a former Morgan Stanley cross-asset macro hedge fund sales professional. CQS also appointed Nick Leyhane, formerly of Barclays, as head of investment risk management in April. The recruitment pattern reflects both strong demand for specialized talent and competitive compensation dynamics that favor distressed-focused positions.
Other prominent distressed funds actively hiring include Centerbridge, Varde Partners, Ellington Capital Europe, and Oaktree Capital, which have all added staff in recent months. EdgeCrest Capital remains positioned to expand its London team pending Financial Conduct Authority licensing approval. The concentration of hiring activity among multiple competing funds suggests sustained capital availability and deal flow expectations within the distressed debt sector, creating favorable labor market conditions for banking professionals with relevant expertise.
Lone Star has positioned itself as the leading recruiter among distressed managers, securing three high-profile hires over a six-month period. In April, the firm hired Adrian Choo from HSBC's real estate strategy function. By August, Lone Star recruited Kambiz Nourbakhsh, who spent 12 years at Goldman Sachs before transitioning to Mount Kellett Capital—a multi-strategy hedge fund founded by Mark McGoldrick, the former head of Goldman's special situations business. Most recently in September, the fund brought aboard Alessandro Grande, previously an analyst in Nomura's financial institutions group. These acquisitions underscore Lone Star's systematic effort to build institutional-grade distressed debt capabilities.
Peer distressed managers are pursuing comparable strategies. CQS executed a notable lateral hire by recruiting Simon Finn from Apollo to establish and lead its new Principal Investments Group dedicated to distressed debt opportunities. MKP Capital hired Killian O'Connor, a former Morgan Stanley cross-asset macro hedge fund sales professional. CQS also appointed Nick Leyhane, formerly of Barclays, as head of investment risk management in April. The recruitment pattern reflects both strong demand for specialized talent and competitive compensation dynamics that favor distressed-focused positions.
Other prominent distressed funds actively hiring include Centerbridge, Varde Partners, Ellington Capital Europe, and Oaktree Capital, which have all added staff in recent months. EdgeCrest Capital remains positioned to expand its London team pending Financial Conduct Authority licensing approval. The concentration of hiring activity among multiple competing funds suggests sustained capital availability and deal flow expectations within the distressed debt sector, creating favorable labor market conditions for banking professionals with relevant expertise.
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