PCM JP

Based on the most helpful WSO content, here's what you need to know about Private Capital Markets (PCM) and related career paths:

Deal Flow:

• Private Equity Consolidation: In continental Europe, there's significant deal flow driven by private equity firms starting closed book consolidator vehicles. These vehicles primarily buy life and pension books, creating substantial volume and exposure to major PE firms.
• Bank Acquisitions: Smaller banks are often acquired as buy-and-build platforms by PEs or larger banks needing scale in challenging market conditions.
• Divestitures: Large banks frequently divest non-core businesses, adding to the deal flow.

Career Path and Exits:

• Technical Skills: PCM roles are more technical compared to standard ECM teams. This involves nuanced pre-IPO fundraising and a deeper understanding of market structures.
• Exit Opportunities:
  • Investor Relations (IR) and Business Development: Common exits include roles in IR and business development within PE firms or Fortune 500 companies.
  • Banking: Returning to banking is also a viable option.
  • LP and GP Investing: Although more challenging, roles in Limited Partner (LP) and General Partner (GP) investing are possible.
  • Corporate Development (CD): With industry expertise and valuation skills, transitioning to CD roles is feasible.

Additional Insights:

• Soft Skills: The job is lighter on technical skills compared to industry coverage bankers but requires strong soft skills and personality.
• Learning Curve: Understanding the structure of a Private Placement Memorandum (PPM) and evaluating GP managers is crucial. Technical aspects like the waterfall of LP and GP cash flow are learned on the job.

This information should give you a comprehensive view of the PCM group at JP and the potential career trajectory.

Sources: Q&A: Fundraising for Private Equity, Cap Intro & Investor Relations Career Paths, Private Funds Group (CS/UBS etc), What Field Are You And in What Broad Region?, What Field Are You And in What Broad Region?, Corporate Development Manager - Q&A