Growth Equity or Top GP Stakes Firm?
Knee deep in recruiting and am interested in both. Growth sounds like it would be more interesting + better exits, but heard GP stakes has better comp & WLB. Thoughts?
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Growth market is absolutely dead right now, and it will take a while to recover. Nobody in the industry really knows how to value anything in this climate.
Both of these jobs cover firms with such a huge range of working conditions that it’s really impossible to generalise, I’d recommend instead thinking a little bit about what skills you want to acquire. Growth equity lends itself more to a generalist investment mindset whereas GP stakes are an incredibly specialised product.
Will just say regarding macro tailwinds, growth equity will become a more attractive financing option for many companies in a rising rates environment and GP stakes may become less attractive assets. Ultimately though I don’t work in either space so cannot comment beyond that.
Just me, but I would find GP stakes investing incredibly boring. You're essentially modeling mgmt company cash flows, which are based on very high level assumptions.
In what ways is LBO modeling more fun?
Bumping.
Any updated thoughts on GP stakes vs growth equity or structured equity?
I mean you could always work at Arrowroot Capital..........
Just curious, why’d you mention that shop specifically?
GP Stakes is one of the most quickly growing strategies along with secondaries. Seems the carry potential here is better than working at one of the firms the GP Stake is in as well.
I would be a bit wary of GP stakes firms going forward. They're essentially glorified FOFs without the optionality / ability to run off the commitment if the firm turns to shit. Dyal, Wafra, Petershill, even Hunter Point have piled in and I just don't see any compelling returns or exits coming out of these in the near term. Hunter Point in particular purports to back their underlying GPs with fundraising and have done jacksquat to date...
So. If they're not able to help these GPs raise capital. If they can't help with investment. ...then what value do they really add? You might be able to get your hands dirty on the operational aspects of growing these firms, but beyond that, you really won't have much direct experience. I'd be cautious.
Really appreciate the insight, Sbed. Do you have a rough sense of comp across GP stakes and Growth Equity? Wouldn’t carry be about the same across the two?
why did you single out hunter point? a headhunter reached out about their associate search so i've been doing research on the space? how is hunter point compared to dyal/blackstone/petershill?
GP stakes investing is too narrow for my taste. I also can’t imagine many of the deals of the past few years will turn out well as consolidation of managers is well underway
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