Exodus at BX TacOpps?
Anyone notice a recent exodus at BX TacOpps lately? Have heard a bunch of people have left recently, performance hasn't been great, their next fund will be smaller in size, internal politics around sharing deals across funds. What's going on there?
I imagine you’re talking about turnover at the Associate/VP level — it is really a grind. You’re basically a catch-all for whatever deals don’t fit into an existing strategy. So TacOps falls victim to a ton of adverse selection deal flow that they have to chase down to do all the work and close the loop before they kill it. It’s usually much more complex and bespoke, so every single situation is a heavy lift and has a very low yield of rocks turned over to deal getting done. You’re also now faced with a new dynamic. TacOps used to be where the growthier stuff would reside. That was actually pretty interesting and higher probability. Growth is now a defined and separate strategy. Since a lot of the deal flow comes through other channels, you’re mostly an execution guy even through the mid-late-stages in TacOps.
Interesting insights.
Curious to hear more
You mean to say LPs that threw capital at a brand name to get their money deployed in a fund whose stated strategy was pretty much that they did not have a strategy is now disappointed in returns? Tell me more ....
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