Secondary advisory - Differences between placement agents and investment banks
Hi all,
I recently worked in Private Capital Advisory (secondary advisory) at a placement agent. I’m curious about the differences in the type of work and responsibilities between a placement agent and an investment bank’s secondary advisory team.
From my experience, at the placement agent, we focused primarily on modeling distribution waterfalls, preparing marketing materials, coordinating with potential buyers, and structuring deals. When it came to aspects like valuation and the business plan, we generally relied on the GP's existing models, which were already established.
However, I’ve noticed that job ads for secondary advisory roles at investment banks often list responsibilities like LBO and DCF modeling as part of an analyst or associate's duties. This makes me wonder about the nature of their work, especially since banks often have sector M&A teams that might assist with more complex modeling, particularly in the context of GP-led continuation fund transactions.
Could anyone with experience in both environments share insights on the main differences in approach and responsibilities between a placement agent and an investment bank in secondary advisory? How much overlap is there in terms of valuation work, and when do sector teams typically get involved in the process?
Thank you.
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