PCA Exit Opportunities - Buyout PE?
With PCA groups growing quickly at many banks - I was wondering if anyone has heard of PCA analyst experience leading to a traditional buyout fund exit. From my understanding the LP side does not offer much in the way of an overlapping PE skill set. However, I have heard that the GP side of the business can be very involved almost "MA - esque" (as it's been described to me). Would single-asset GP deal exposure be a good prep for buyout PE… would a PCA analyst be able to recruit for buyout PE… or would they primarily be confined to recruiting for secondaries buyside?
Why would you want to go to the primary side though? If you’re talking comp, I’m not quite sure what the benefit is of primaries because the secondary side will allow you to realise carry sooner.
Thanks for the response!
I am aware the secondary side has it's benefits relative to primaries and vice versa. The focus of my question isn’t really to understand the pros and cons of different outcomes/exits, but rather, understand what outcomes/exits are possible.
Just reaching out to the broader WSO community to understand if GP-led deal experience is something that can serve as a good pre-req for transitions to both primary AND secondary buyside or strictly secondary buyside.
Bump
Bumb - really curious about this
I’ve seen someone go from MF Secondary to New Mountain Capital
The switch to large buyout funds has been done before but you’ll mainly see it from 1 or 2 of the major secondary players
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Bumb
It seems like no one really knows an answer to this
From what I have seen, attrition at EB PCA groups has been solid so not too many data points
Currently an Analyst at EB PCA. GP led SACF deals could be spun for a buyout role, but first question they’ll ask you is why you’d want to go direct PE coming from the secondary side of things. To be frank, tougher to spin a buyout role esp when competing against folks in M&A. Not to say that it can’t be done as I’ve seen someone from my group land a UMM offer.
That is great to hear
Could you give a few firms around the same level as the one your co-worker went to? Would just like to get an idea of it, thank you!
Honestly, no - you'll not be on the inside track to be considered for buyout PE roles. On the whole, those interview slots are reserved for M&A, Sponsors (if you're the kind of sponsors team running the LBO), or industry coverage analysts. Unfortunately, there is still a stigma not just in PE, but across most principal areas of finance outside of Secondaries PE, that PCA is a fluffy relationship-based frou-frou group of people. Obviously that may not always be right and say you are in PCA and advising on a GP-led secondary transaction, that could be hugely parallel. But the bias tends to be that those in PCA are not really up to the caliber of those who are in the more traditional product or coverage groups... Not saying it's fair or just, but that's still how the perception is.
It’s all about how you spin your story. Less looks sure, but you’ll get the chance if you’re prepared
How possible is UMM?
If my goal is to do UMM PE at a firm like Genstar/, Advent, GTCR etc, should I accept my FT offer at an EB PCA team or try to rerecuit ? Thank you!
How possible is UMM?
If my goal is to do UMM PE at a firm like Genstar/, Advent, GTCR etc, should I accept my FT offer at an EB PCA team or try to rerecuit ? Thank you!
I would take the offer and do a year of that see how you can spin it. If you see no way to spin then try to lateral.
Everything is about how you sell yourself. You can argue you get to peak into the mind of the GP and learn what drove their investment and eventually the perception of LPs.
Secondaries is cool as shit. You’re not siloed to one asset. You’re looking at the best GPs have across different sectors. Make the most out of your experience. I know people that switched from IR to PE. Unlikely sure, but in the end it comes down to how bad you want it. As with everything else in life
Advent is a MF
100%. I was referring more to the incumbent view without having to put in that due effort.
Curious as to what would position me better to potentially move to other roles such as UMM PE, Different groups in IB, etc. - PCA at EB or M&A at LMM / MM firm (Like FocalPoint Partners, BGL)
EB PCA v LMM M&A isn't really a fair race here
Nobody from FocalPoint is going to UMM PE fund over someone from Evercore PCA
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