CDD vs Private Equity Placement Agent
Evaluating two paths, with the end goal in a few years being working for a MM or LMM PE firm in a few years. Is commercial due diligence (think LEK) or private equity placement agent role better (think Park Hill). I know neither is the best best. The placement agent role seems like you get an okay modeling background but lack the total deal exposure the IB M&A gives you. A background in CDD really only gives you exposure to the market side (market size, growth models, etc.), though you're looking at a number of different target companies. I know both aren't ideal the best paths to getting to private equity but which would you take? Any advice or guidance would be helpful.
Based on the most helpful WSO content, here's a breakdown of the two paths you're considering for a future in MM or LMM PE:
Commercial Due Diligence (CDD) Role:
Private Equity Placement Agent Role:
Recommendation: Given your end goal of working in a MM or LMM PE firm, the choice largely depends on where you want to strengthen your profile. If you aim to enhance your understanding of market dynamics and competitive analysis, which are valuable in the due diligence phase of PE deals, a CDD role could be beneficial. However, if you prefer to build a network within the PE industry and understand the financial aspects from a fundraising perspective, the placement agent role might be more suitable.
Neither path is a direct route to PE, as you noted, but both provide valuable skills that can be leveraged to transition into PE roles, especially in MM and LMM firms where versatility and a broad skill set can be particularly advantageous.
Sources: How to approach LMM PE recruiting?, Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, Private Funds Group (CS/UBS etc), My Path - MBA Banking Associate to PE, Why private equity practice vs. general practice?
bump
Cdd
Commercial 10/10 times
Know quite a few people who have gone LEK to MM PE
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