Private Equity at a BB

How does GS/MS/JPM/ any other BB's PE fund differ from your traditional buyout funds? From searching WSO, I've gathered that these funds "tag along" with other sponsors to co-invest in deals, and they tend to be quite large. Why do they seem not be be as good an experience as your traditional megafund? I imagine if you are not leading deals, but just co-investing, the experience becomes more tainted.

How are the returns at these BB internal-PE funds and how well do they place into HFs/b-school/other PE shops? Thanks!

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By BB Internal PE funds, do you mean GSCP and MSCP? Most of the other banks have pretty much spun out their PE funds into independent firms, or are in the process of doing so (e.g., JPM/One Equity and CS/DLJ Merchant Banking). As usual, it will be hard to try to bucket an entire group of firms and figure out the overall quality of experience, so I would try to get more specific with regard to what firm you're looking at.

Regarding propensity to co-invest, I don't really have any stats but do know that most of these funds are at the very least capable of leading a transaction (probably smaller ones, but whatever, larger transactions by nature lend themselves to co-investing).

 

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