Large Cap PE Move to Coinvest
Hi all - I currently work for a large cap PE fund (think BX, Carlyle, KKR, Apollo types) as a PE associate and am thinking about making the move to a coinvesting role for better work/life balance. Few questions if anyone has any insight:
1. Does moving into a coinvesting role cut you off from future optionality to move back into direct investing (or even earlier stage investing at a VC?)
2. Who are the main coinvesting firms?
3. What is comp like?
4. Any tips on making the move and best positioning myself to land a role?
5. Are there any considerations about being on the coinvesting side that I should consider as I make the decision to switch over? Any regrets?
Thank you in advance!
Hi wildhawk2022, hope I can help. Do any of these links cover what you're looking for:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
Does moving into a coinvesting role cut you off from future optionality to move back into direct investing (or even earlier stage investing at a VC?)
No it doesn't though you need a clear story. If you are interested in VC you can try to transition directly if you have had relevant experience. Most FoF co-investors I know of don't do early stage VC (cheque sizes too small to bother).
Who are the main coinvesting firms?
2 categories here: FoFs such as Harbourvest, Stepstone, Hamilton Lane. More professional, better comp (including carry for VP and above). Pension/Endowment/Sovereign Wealth: if you are more 'values based' as you can directly link your returns to your members/country etc. Will have more bureaucracy. Comp won't be as good as FoF.
What is comp like?
Depends on where you end up but both of the above categories will be worse than direct. If you are doing a lot of co-underwriting then your hours may not be that much better than GP. FoF funds are well diversified and I think the probability of getting carry is pretty good so you have that going for you.
Any tips on making the move and best positioning myself to land a role?
You have had direct investing experience that translates into co-investing and co-underwriting. You want to zoom out and be less in the weeds of due diligence etc. Get to see broader set of managers, geographies, strategies etc etc
Are there any considerations about being on the coinvesting side that I should consider as I make the decision to switch over? Any regrets?
You have listed WLB as a driver for this change. I would take care on this as noted above.
Who are main headhunters for the FoF firms?
I’d check out Partners Group. Heard coinvest has historically been their bread and butter
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