Anyone have any insights into ICG secondaries culture, comp, deal flow, performance, wlb, etc.? Heard they’re the big player with $11bn ($4bn of which I believe is committed co-invest) but there’s relatively scarce info on the team on here. Some posts have mentioned below market pay but a friend told me they also offer carry to associates.
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Based on the most helpful WSO content, here are some insights into secondaries, which might provide some context for ICG:
Compensation: Secondaries compensation can vary significantly by firm. For associates at top shops, base salaries are typically in the low $100k range, with total compensation (including bonuses) ranging from high $100k to low $200k. Some firms, like Partners Group, introduce equity components early in one’s career. Carry is often part of the package, but its structure and allocation can differ widely.
Work-Life Balance (WLB): Secondaries generally offer a better work-life balance compared to direct PE. Partners in secondaries are often reported to work less than 50 hours a week, including travel. This is due to the nature of secondaries, which involves monitoring investments rather than actively managing them post-close.
Deal Flow and Scalability: Secondaries are considered more scalable compared to direct PE. This scalability can offset the lower management fees typically associated with secondaries teams. However, the fee gap and lower carried interest fees (10-12.5% vs. 20% in direct PE) can result in a pay gap, especially at senior levels.
Performance and Returns: Secondaries funds generally have lower expected MOICs (1.5-2.0x gross) compared to direct PE funds (2.5-3.0x gross). Despite this, successful professionals in secondaries can still achieve significant financial success, albeit at a lower scale compared to direct PE.
Culture: The culture in secondaries is often described as less intense than direct PE, with deal processes being less structured and timelines more drawn out. This contributes to the better work-life balance.
While specific details about ICG secondaries are not explicitly mentioned in the WSO dataset, the general trends in secondaries might apply. If ICG offers carry to associates, it could be a competitive advantage, as carry is not always guaranteed at the associate level in all firms.
Sources: Secondaries Comp / Culture in 2023, WSO 2022 Investment Banking Work-Conditions Survey (Part 1/3), Secondaries/Coinvestment Compensation, Private Equity shops with the best work/life balance, Capital Group Information
also curious. where did you see that it was below market pay? Their team size seems crazy small for how big their fund is
Purely anecdotal - I think there was maybe 1 comment on another ICG thread that they pay below market. Also there are like 5 salary data points (albeit from several years ago) and they’re super below market.
I do agree though that their AUM/head is insanely high and they also charge higher fees than other secondaries players so maybe those are green flags
Know someone who worked there - can't say more to not dox as only a few have left. You mean strategic equity not regular secondaries. Associates do get carry (and charge 2/20), so not below market pay. Hard seat to get now. From what I heard, marketed now like a large cap buyout fund through ~10 single asset CVs per fund that would have been sponsor to sponsor - majority being tech. Essential the only player that doesn't need to syndicate big CVs. Would guess recipe for a blowup (and had the first CV ch11), but AUM/IP is insane
Thanks, this is helpful. Any idea what the carry is at the associate level though? I feel like it cannot be that much..?
Also on the ch 11 was it Wheel Pros? Just from Googling there’s only a handful of ch 11s and they’re listed in this article as an investor, along with Bx and Clearlake. Any idea how big their investment was in that deal? Also have they had any other bad investments or just that one
https://www.ft.com/content/415c292e-d706-46ad-8103-dedff2822094
Not sure on the donut - anecdotal but doing the math off what I heard for % of carry, albeit typical clawback/vesting/liquidity/join timing/assuming some economics on co-invest from their main fund side cars, would eclipse almost every PE assoc amortized so have a hard time believing its below market
also zips car wash went to 0.
Ivanti is marked as a good deal since they got cost back, but I would be dubious how the remaining value in that company based on how the debt has traded.
Any insight on the hours? Is it the same as buyout PE or closer to a traditional secondaries group?
Are they hiring?
Probably similar to buyout PE given they are purely focused on single assets on the GP-led team. Expect to do company-level diligence which is simlar to a direct PE role but the dynamics of entering the transaction will be different since secondaries investors are going to be passive investors and still rely on the GP to drive the value creation.
The secondaries lifestyle is usually more chill on the LP-led side since there are less firms who are doing company-by-company diligence in a diversified portfolio and some will just hope by buying at a discount they will get the return profile they would like without a rigorous diligence process.
Thanks for the comments. On a separate note, would you say job stability at a FoF (primary, secondary, co-invest) is better than say an actual GP?
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