IB to FoF/Co-Invest to PE ?

Based on the most helpful WSO content, transitioning from IB to a FoF/Co-Invest role for a year and then aiming for PE or GE can be a strategic move, but it comes with trade-offs. Here's what you need to consider:

1. Skillset Development:

   • Co-investment roles can provide valuable exposure to buyside due diligence and modeling, which are directly relevant to PE. This could be a step up from the more process-driven tasks in IB, like building decks and comps.
   • However, the FoF aspect might not add as much value for a direct PE transition, as it is often seen as less technical and more qualitative. The transferable skills from FoF are limited compared to direct investing roles.

2. Perception in PE Recruiting:

   • While co-investment experience is a plus, spending time in a FoF role might raise questions during PE interviews. Recruiters may perceive it as a deviation from the traditional IB-to-PE path, especially if the FoF work is heavily focused on fund allocation rather than direct deal involvement.
   • You’ll need to craft a strong narrative to explain why you made the move and how it aligns with your long-term goals in PE or GE.

3. Exit Opportunities:

   • Co-investment experience can be a bridge to PE, especially if you gain hands-on exposure to underwriting and deal evaluation. However, moving from a FoF-heavy role to PE might be more challenging, as FoF work is often considered less relevant to direct investing.
   • If your goal is PE, prioritize roles within the FoF/Co-Invest team that emphasize co-investments over primary fund investments.

4. Timeframe Consideration:

   • Spending just one year in a FoF/Co-Invest role might limit the depth of experience you can gain. PE recruiters typically value candidates who have demonstrated meaningful contributions in their previous roles.

5. Alternative Paths:

   • If you’re set on PE or GE, consider whether staying in IB for another year or pursuing a direct investing role might be a more straightforward path. Alternatively, a FoF/Co-Invest role with a strong co-investment focus could still be a stepping stone if you position yourself well.

In summary, a year in a FoF/Co-Invest role could be beneficial if you focus on co-investments and gain tangible buyside experience. However, you’ll need to be strategic about how you present this experience to PE recruiters and ensure it aligns with your long-term goals.

Sources: Direct Invest to FoF/Co-Invest?, Q&A: 1st year FoF Infrastructure at Buyside, Q&A: 1st year FoF Infrastructure at Buyside, https://www.wallstreetoasis.com/forum/asset-management/qa-current-analyst-at-20bn-hedge-fof?customgpt=1, https://www.wallstreetoasis.com/forum/asset-management/qa-current-analyst-at-20bn-hedge-fof?customgpt=1