Private Capital Advisory, Secondary Advisory - Difference, Day-to-Day, Exit Ops, Learning, Hours, Bonus
I'm not very knowledgeable about PCA and Secondary Advisory. In fact, I am not even sure if PCA and Secondaries are the same space/role just said in two different ways. From someone who works in PCA/Secondaries:
What are the differences between the two?
What is daily work like compared to, let's say, an M&A IB Analyst role? Is it similar to a Sponsors role?
How are exit opportunities from these groups? What type of skillset do you build relative to other IB Analyst roles and how is it from a learning standpoint?
Are the hours and is the bonus similar to standard coverage or M&A hours?
Any information would be much appreciated!
Answers to all these questions are on here. Search secondaries advisory or PCA and you’ll find threads discussing this.
Private Funds Group, Private Capital Advisory, Private Funds Advisory are all different names for the same thing. Depending on the bank (most are integrated these days) these groups advise on primary fundraising and/or secondaries transactions (LP portfolio sales or GP-led continuation funds).
Will do, Ty. A bit confused though on 2 things: 1) PCA is the same as secondary advisory right? 2) for LP vs GP led secondaries wouldnt it be GP led (rather than LP) that advises on PE portco exits either through sale or IPO?
Correct, every bank that refers to PCA is referring to secondaries advisory. That said, other banks have secondaries advisory and it’s just called something else (PFG, PFA, etc.) Evercore for example has both - PCA: Secondaries Advisory and PFG: Primary Fundraising.
GP-leds are advising on continuation funds which are an alternative to an IPO or full exit via M&A. The GP generates liquidity for its existing LPs and remains in control of the asset. Other GP-led transactions include tender offers, strips sales, NAV loans / pref equity, etc.
Work in one of the more well known PFG/PCA shops. Day to day on the secondaries side is similar to M&A — we internally refer to these deals as M&A lite.
Transactions involve drafting similar marketing materials albeit to a lower degree of granularity (which I personally really enjoy haha). Think CIM, teasers, etc. Modeling typically involves layering onto the GP build, rolling up asset(s) into a tiered waterfall, and sensitizing secondary buyer net returns.
Will note the above applies to GP-led secondaries.
Will you PM me? Appreciate the info and have some further questions
Yea sent you a pm
Hi - can I PM you as well? Had some questions on both GP side and LP side
Any insight into recruiting for PCA roles post-mba?
I would echo the same.
secondaries advisory is not PCA, it is a team within PCA usually.
You will be expected to understand, dissect, and customize operating and valuation models for all sectors (most teams are agnostic) and strategies (infra credit buyout growth etc).
GP led waterfalls can get pretty hairy with the tiers and MOIC/IRR hurdles and nitty gritty terms in LPA as well as the cap table of the asset usually adding more complexity.
Secondaries is highly technical. In terms of marketable skills, given that a lot of coverage teams offload their modeling to other groups, secondaries teams (juniors) tend to get great exposure compared to their industry coverage peers (could be inaccurate but it’s anecdotal)
curious how PCA M&A compares to regular M&A - are you able to easily move to another team if you don't like it?
would not call it pca m&a outside of group, depends on bank but i know EVR and believe PJT are not supportive of internal move.
Pretty common at LAZ to see juniors move around. Have even seen some leave to coverage and come back to PCA
If you wouldn’t mind could I also ask you about your team via PM?
Can you Dm me? Would love to learn a bit more here
Id iure harum velit quae. Dolorem explicabo porro nesciunt perferendis aspernatur unde. Fugit qui deleniti illo culpa ut fugit. Expedita aperiam quibusdam tenetur. Corrupti odit consequuntur aut eum voluptatem.
Esse ullam eos ut aliquid incidunt quis quas. Facilis blanditiis est recusandae. Omnis aut vel sit provident necessitatibus dolorum. Laboriosam aliquam id perferendis quia dignissimos animi officiis.
Dolorem qui deserunt deserunt nihil ducimus quo rerum. Enim ea illo veniam nulla. Aspernatur labore alias tempore labore et tempora officia. Ullam aspernatur facere at odio dicta.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...