IR at PE Shops
Thinking of exiting into IR next year (I’d come in as an associate). Anyone have insight into shops that let IR folks co-invest/get carry? Or any that have the best culture/wlb/comp? Kind of new to it and trying to learn more before committing to this exit. Ideally would want to have more of a salesy/relationship type position than being in a model or doing bitch work/turning comments. Any insight or other recommended career paths is appreciated. Thanks!
Based on the most helpful WSO content, here’s what you need to know about IR at PE shops:
Co-Investment/Carry Opportunities:
Culture, Work-Life Balance (WLB), and Compensation:
Salesy/Relationship-Oriented Role:
Travel and Lifestyle:
Career Path and Exit Opportunities:
Recommended Career Paths:
For the best experience, target firms that value IR as a function, have a strong growth trajectory, and align with your lifestyle and career goals.
A decent number of shops will offer co-invest (have seen offered across the spectrum from both smaller to larger places) and carry is typically offered to IR VPs as you begin to assume relationship coverage.
Typically, for shops that offer co-invest you’ll get in at similar terms for employees (i.e. levered and fee/carry-free) but they might cap your contribution to a certain threshold below investment professionals. Not sure why that is to be honest but figured I’d flag.
Too many variables to answer WLB or other questions but if you have anything else specific I’d be happy to answer them here.
Do you know the specific funds that are better for IR professional and view IR as “Important” for lack of better wording. What does comp look like at these kind of shops, ie how much discount to IP
This isn't what you're looking for but it varies wildly between shops. Every firm views their IR/capital formation team differently, and pay, carry, co-invest, WLB, etc. reflects that. Do your best to speak with a relatively high number of firms to get a feel for the the different team dynamics
Do you know the specific funds that are better for IR professional and view IR as “Important” for lack of better wording
No idea why my reply didn't pull through. From the LP side (FO) it seems like the better IR professionals tend to be on leaner IR teams, the best ones all used to be IP and happened to cover clients at the same time until their fund became large enough to warrant a dedicated IR person. This is mostly from LMM/MM funds but point still stands. Most MF IR people are useless in my experience, hence they are not valued and just product pushers. My opinion would be to find shops with 1-2 IR people who have great backgrounds and shoot for being a junior on one of those teams. Will probably open door down the road to be "the" IR persona at a firm versus one in an army.
I’m in a similar position, what made you decide on PE IR vs corporate IR at a public company? I know the roles are quite different but I can’t decide
he mentioned co-invest/carry potential, which public doesn't offer.
Right but is that reason enough alone to choose one over the other? Would think picking based on which kind of work you would enjoy or be more successful in would be more important
You will be doing bitch work / turning comments as an IR associate
Look into business development / capital markets role in PE if you want to be more relationship based
Bump
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