Silver Point Stock Pitch Competition
This Case Competition offers sophomore and junior undergraduate students an opportunity to pitch their best special situation investment idea to the Silver Point team.
Participants can win cash prizes and secure an interview for an analyst position within the firm.
1st Place Prize: $3,000, 2nd Place Prize: $1,000, 3rd Place Prize: $500
- Participants must be current sophomores or juniors at an undergraduate university or college
- Teams must be comprised of 2-4 students
- Work product must be original, though feel free to use any public resources available to you to support your research
- Each team must create a team name and designate one member as the team captain. All submissions and communications should be conducted by the team captain.
- Please register your team as soon as possible via email to email@example.com with the subject line “Silver Point Capital Case Competition Registration ([Team Name])”
- Include team name, names of the team members, universities members are attending, designation of team captain, and all team members’ resumes (including basic information on upcoming summer 2017 internships)
- Registration is due by Friday, March 17, 2017 at 5:00pm ET. By registering for this event, you accept the Terms & Conditions as outlined in the separate tab. To the extent that there exists any inconsistency between these summary pages and the Terms & Conditions, the Terms & Conditions shall govern.
- All registered teams are required to submit a 3 page Initial Pitch by Tuesday, March 21, 2017 at 9:00am ET via email to firstname.lastname@example.org with the subject line “Silver Point Capital Case Competition Initial Pitch ([Team Name])”
- The top 5 teams will be selected to participate in the final round. Notifications of selection will be sent by Friday, March 24, 2017.
- For the final round, teams are expected to prepare a presentation with accompanying valuation work. The presentation deck is due by Wednesday, April 5, 2017 at 10:00pm ET via email to email@example.com with the subject line “Silver Point Capital Case Competition Final Round Submissions ([Team Name])”
- The final round presentations will be held on Friday, April 7, 2017 from 8:30am ET – 12:00pm ET in Huntsman Hall (room still TBD) at the University of Pennsylvania in Philadelphia. Silver Point analysts will be judging the final presentations. Spectators are very welcome to attend. We will notify you of your time slot early in the week and generally all team members are expected to attend the team’s presentation in person.
- Each team will present its pitch. Presentations will be 20 minutes long, and we will allot an additional 10 minutes for Q&A after each presentation. Finalists who do not reside in Philadelphia will have their travel arranged and paid for by Silver Point Capital.
For our case competition, pitches will be restricted to several areas where we have found unique opportunities in the past. Please pick an opportunity that falls into one of the following buckets (for examples see Detailed Guidelines):
- Stressed / Distressed Credit: Stressed / distressed credits where the pitched security trades at a dollar price <80 and with a yield-to-maturity (YTM) of at least 14%
- Post-Reorganization Equities: Equities that have exited a restructuring process (Chapter 11, Scheme of Arrangement, or Chapter 7) since (and including) 2015
- Levered Equities: Equities with net debt / enterprise value >75%
- Spinoffs: Equities that have been spun off from a parent company since (and including) 2015
While the majority of the firm’s investments historically have been in credit, there is no preference for credit ideas. We are looking for thoughtful analysis that identifies why the market is missing a potential opportunity, and why you believe a particular security offers attractive risk-adjusted returns. Both short and long pitches are welcome.
The Initial Pitch should lay out the investment thesis in 3 pages (2 pages of text, 1 page of charts / tables), providing a framework so that we can understand why a particular security will produce superior risk-adjusted returns. We recommend covering the following topics:
- Business Description: Concisely describe the business and industry.
- Valuation & Comparable Companies: Provide the metrics you believe are most helpful in valuing the company (e.g. P/E, EV / EBITDA, FCF-based metrics). For equities, we would like to see both unlevered and levered metrics. Include a description of the capital structure.
- Differentiated View: Help us to understand what the market is missing. Is the market missing margin upside? An undervalued business segment? Hidden assets? Are your numbers materially higher than consensus earnings, and if so, why?
- Catalysts: What is going to cause the security to re-rate? Better-than-expected earnings? Future cost cutting or capital return? A credit event that forces a restructuring?
- Basic Projections & Returns: Project the key valuation metrics for 3-5 years. Provide a view of expected returns over the time horizon of your investment thesis.
- Risks: Explain what could go wrong with the thesis. To the extent there are mitigating factors that limit downside, help us to understand them. Provide a sense of potential downside.
- Documentation: Include the team name with team member last names in the footer.
Given the short nature of the Initial Pitch, we understand if some of the sections are very short. Feel free to integrate the path of charts within the 2 pages of text, but do not exceed 3 pages. Font size and formatting should be reasonable. There may be a particular section that doesn’t make sense to include for your particular security, or it may make sense to include other information not listed above.
In addition, Silver Point Capital will host a Distressed Investing 101 presentation on Monday, March 13, 2017 at Huntsman Hall (Room TBD) from 6-7:30pm
Discussion topics will include: distressed investing, a recent case study, Silver Point career opportunities (both summer analyst and full-time) as well as a description of the Special Situations Case Competition.
Link here for more information and competition guidelines.