GP Stakes vs Private Credit
Thoughts on choosing one of these careers? Is there a notable difference in comp (including carry), hours worked, career flexibility, etc.? Have offers for both and not sure what to do. Thx.
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I think Private Credit is probably more easily understood. GP Stakes while valuing recurring management fees will have more "equity risk" estimates through carry and new product expansion so could be more interesting but skill set not as well understood/less flexible
Thanks, Franco. Sbed. Any sense for how comp, hours, etc compare?
I feel like the GP stakes market is incredibly saturated by now and a very niche skill set in which to start a career
Bumping for comp figures
You will probably make more money in GP stakes than credit. But you won’t analyze actual businesses which won’t satisfy you if you want to be an “investor”.
Private credit all the way.
I’m still not sure what the exit is for all these GP stakes investors. Petershill took a portfolio public, Dyal has done some recaps, but there hasn’t been a ton of true monetizations (to my knowledge) in the industry.
An IPO is the only thing that makes sense to me. I guess they could find a low cost of capital investor (like a pension) who has a large infra book and say these are similar but uncorrelated returns?
Look that is an option for the top quartile of the market. Dyal is doing most of those deals. Now you’ve got managers investing in firms with like 250-500 million EVs. Those firms can’t / shouldn’t list. There are some insurance companies and sovereign wealth funds who don’t have partners yet and will continue to look to buy out management companies (sun life / crescent) but that universe is finite also.
Dyal’s expansion into the NBA is quite interesting and kind of negates some of the commentary on WSO that GP stakes is boring. However, even if it is pretty boring, main thing I’m trying to determine is comp as it seems those in GP stakes make more than private credit and possibly traditional PE or growth equity.
Yah maybe they do? I couldn’t tell you. Some smart people are doing it so maybe I’m missing something.
My perspective, not that it should carry any weight, is I would feel more comfortable building my career in a bigger market with more opportunities. You want to do GP stakes? There are probably 3 people worth working for. You want to do private credit? Great there are +20 people worth working for.
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