PCA/secondaries market exits
How are exits for secondaries IB advisory? Are people typically stuck within the secondaries space or are there opportunities for laterals to more traditional roles or PE etc?
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Assuming you’re the same person asking about comp progression? There’s a lot of info already on here regarding secondaries exit & comp and it’s all largely up to date.
Edit: I’d recommend looking there first. If you have more nuanced questions… happy to answer.
This refers more to secondaries advisory IB rather than secondaries broadly
Scales the same as M&A. Analyst comp will largely be the same as M&A counterparts. At associate and above it gets more variable as bonus is more closely tied to group performance.
Edit: sorry, thought this was the comp thread. Exits will largely be to secondary funds, fund of funds, co-invest (if you’re working on GP-leds), or lateral to M&A. In the current job market, I wouldn’t say it’s easy to lateral to M&A but not impossible if you can articulate a good story / reason why. Exits to direct PE generally don’t happen. A few reasons why. One, the work just isn’t the same. Yes, secondaries can get highly technical and there is modeling but it’s specific to secondaries and you are rarely building operating models from scratch. Second, secondaries usually is the exit opportunity. You get paid well, work decent hours and most people enjoy the work. You’d make more in direct PE, but the lifestyle sacrifice will likely reflect that.
If you’re just starting out in your career, I wouldn’t recommend starting in secondaries. You won’t be stuck there but you’ll be fighting an uphill battle to go elsewhere… and this is coming from someone who works in secondaries and loves it. But early on, you’ll want options. Confirm you want to be in finance first, then decide to get more niche. Most people in finance don’t even understand secondaries, now imagine not wanting to work in finance and trying to explain to someone what you do in secondaries.
Based on the most helpful WSO content, the exit opportunities for associates coming out of secondaries programs are quite diverse. While many people choose to stay within the secondaries industry, there are also opportunities to move into asset management or allocator roles. Some individuals have also transitioned into smaller corporate development roles.
However, it's important to note that transitioning into traditional Private Equity or Venture Capital / Growth roles might be a bit challenging. It's not impossible, but it may require additional networking and demonstrating relevant skills and experiences.
Remember, every path has its own unique set of challenges and opportunities. It's all about finding the one that aligns best with your career goals and personal interests. Keep swinging from those branches, and you'll find the right one!
Sources: Breakdown of Post-IB Exit Opportunities, Secondaries Comp / Culture in 2023, Why Would Anyone Go Into Consulting?, https://www.wallstreetoasis.com/forum/investment-banking/ib-exit-opportunities?customgpt=1
Would love to bump this as well. There seems to be like a strong divide here on WSO: one side, people saying PCA will pigeonhole you and the opportunities are pretty limited, and some seem to "look down" on it cuz it is lower prestige vs M&A/worse exits/not technical in nature; the other, it seems that its on the rise as the next big thing and a hot area for growth, so a very "get in now before the secret gets out" sort of sentiment. LMK if I'm wrong in my interpretation, and would also love more people to add views to this if I'm missing anything.
Also on that, curious to see how opinions might be different being a junior in this industry starting out at a market leader (EVR/PJT Park Hill) vs. a second-tier or newer entrant like JEF/Campbell Lutyens/HL/etc, might look career-wise.
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