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I believe Third Point would fall into this category as well since they have venture in addition to public
Usually you're on one side or the other (that's how Altimeter and Coatue are)
Shouldn’t be siloed. Crossover investors usually commit to IPO participation when they invest in the pre-IPO crossover round, it’s really an extension of the IPO process.
For funds that have earlier stage private investing functions, with separate funds. Then it’s more likely to be separate
Junior folks are usually hired for a specific team, which is the intersection of public vs private and a given sector or vertical. The roles are simply different on a day-to-day basis, and they get more different as you focus on earlier-stage companies. Think about things like public vs private investable universe size, market liquidity, ability to interact with and advise management, LP risk parameters and investment mandates, depth and character of financial models, etc. These characteristics drive different responsibilities and different skillsets.
That said, I would not at all say that the roles are siloed. All of the crossover funds have sector meetings where they consider their portfolio and active opportunities from early-stage to public, and senior team members will synthesize knowledge across the investment lifecycle. In other words, you'll definitely get exposure to both markets. But it doesn't really make sense for a junior employee to be worrying about an earnings print one minute, listening to a Series B pitch the next minute, and deciding if your firm should buy secondary shares of a unicorn the next minute. It's not synergistic, nor is it efficient. That said, the senior investment professionals do spend time thinking holistically about the entire asset spectrum. But as a junior, you need to play your role and prove competence there before you can start getting more responsibility.
Appreciate the insights! Do you know what comp is like for a 1st year analyst at one of these funds?
Did not receive an offer from the three mentioned funds but received an offer from a different crossover fund and offer came in ~250 - 300K
There are plenty of funds and people within those funds that do both. But it really depends on the sector you're investing in.
Won't say names but I will say that at least within healthcare, especially on the biotech/tools/diagnostics/medtech side, the monetary opportunity to participate in actual crossovers (especially with SPACs) is an unprecedented time for investors
What would be the reason someone would take an offer at a crossover (private side) vs. a more traditional growth role like GA?
I think capital deployment is a lot faster at crossovers (e.g. Tiger averaged ~2 deals last quarter) and there is less operational nuisance (meeting every single CxO / customer) / involvement while making the investment decision?
“Operational nuisance” is called diligence
Both are good places to be obviously, but lots of ppl have been joining crossovers b/c (1) pace of investing is faster than in traditional growth equity shop, (2) you can learn from public side investors at the same time and in theory ppl should have an edge to identifying which private investments will eventually do better in the public markets, (3) comp is usually better. Less process work too in a crossover shop usually since the ops/trading teams usually handle those matters.
Much appreciated. Any idea how big the comp difference is?
Wrote company by accident, meant comp
Per a HH, the Coatue public role breaks down to be 70/30 public v. private with the private side being mostly just that other than if a prior investment is looking to IPO and then you need to eventually sell down. I’m sure from a coverage perspective there is active dialogue between both sides on industry trends, etc.
any firms outside of coatue that will let you do both public + private?
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