U.S. private credit firms boost workout hiring as distressed-loan defaults rise

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Private credit boosts workouts

Highlights

U.S. private credit firms like Ares and Blackstone have increased hiring for workout and restructuring teams as distressed-loan defaults rise and investor redemptions surge.
Job postings from Blue Owl, Ares, Golub Capital, and Blackstone remain below 2022 highs but focus on troubled direct lending, signaling persistent demand for workout specialists.
Restructuring roles concentrate in midlevel positions due to a shortage of professionals with real credit-cycle experience, as many senior candidates date back to 2008.

According to Business Insider, demand for professionals who can extract value from troubled loans has been on the uptick for the last 18 months, John Rubinetti, a partner at Heidrick & Struggles, says. The need is growing as lenders move from years of aggressive underwriting into a tougher phase of managing credits that are under pressure. Executives are also emphasizing team depth to calm retail investors, who are asking for their money back in record amounts, as scrutiny increases around potential distress in private credit. Ares CEO Michael Arougheti highlights this defensive posture, telling investors on the firm’s February earnings call that its credit group believes it has the largest portfolio monitoring and restructuring teams in the industry. Larger platforms such as Ares and Blackstone already maintain robust monitoring functions and can take aggressive steps, including assuming control of bankrupt companies, to keep funds performing.

What workout teams do and where firms recruit

Workout and restructuring groups typically sit within portfolio or asset management, where they monitor loan performance and produce regular reporting, recruiter Adam Loughran of Selby Jennings says. Workout teams are a subset that concentrates on troubled credits and pursues tactics designed to enhance returns in challenging situations, including Chapter 11 restructurings in or out of court. When a lender leads a deal, it can pull multiple levers, such as changing management, taking an equity position, or renegotiating terms, Loughran says. As private credit firms grow their loan books, Rubinetti says some are increasingly viewing their holdings through a private-equity-like lens, widening the search to include portfolio operations specialists that are already in demand on the buyout side. One Blackstone posting describes the skill set as being at the intersection of credit, private equity, and operations, reflecting the broader mix firms are now seeking.

Market signals, upside potential and experience gap

An analysis of LinkedIn postings by Revelio Labs finds overall private credit job postings remain below the industry’s 2022 peak, even as demand for workout specialists persists. Current postings from Blue Owl, Ares, Golub Capital and Blackstone include roles tied directly to the troubled direct lending market, signaling continued hiring despite the broader slowdown. The work is not limited to damage control, with Octus Credit CEO Kent Collier arguing in a post on X that restructurings can sometimes generate equity-like outcomes, including multiples on invested capital above 2.0x when lenders end up owning restructured companies. At the same time, recruiters and data point to a potential bottleneck in experience, with Revelio Chief Economist Lisa Simon writing that demand concentrates in midlevel roles because restructurings typically require seasoned judgment. Loughran says many firms still value people who lived through the 2008 downturn, but those candidates are often very senior, leaving fewer junior and midlevel professionals with real-cycle experience.

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