Hey guys,
I am getting some interest from Fund of Funds, but not currently from normal PE shops (which is my end game).
I’d love to hear opinions on:
1) Exit ops from fund of funds, particularly into traditional PE
2) Comparable lifestyle, compensation, and interestingness of work compared to PE
Thanks!
Why is normal PE shops your end game?
It was a goal I set for myself a while ago, and so unless given good cause I intend on following through
1) Exit ops - exiting into traditional PE is not likely. The more co-investment/GP-led secondaries that you do then the more likely you could transition to the MM/LMM.
2) Comparable lifestyle - should be much, much better. Since you're an arms length away from the transaction if something breaks/someone leaves etc. etc. you don't have to deal with it. Depends on the shop but you could be working 40 hrs or 75 hrs.
3) Compensation - Once again depends on the shop but you'll take a discount to MF buyout PE. That said, comp should still be quite nice unless you end up at a pension.
4) Interestingness of work compared to PE - to each their own here. Some people enjoy the top down allocation work and speaking with the best and brightest managers. Some people like rolling their sleeves up and working with PortCos.
It's a nice gig where you're reasonably compensated and work fewer hours. Up to the individual as to whether or not that's a trade off you're looking for.
Thanks for the response. What do you think someone can expect at the associate/senior associate/VP level at a big FoF? The data in the WSO database seems outdated.
Super helpful thanks, I’m also interested in comp (particularly the U.K.)
will second everything said here. FoF is less stress and hours than PE but its reflected in remuneration (particularly the higher you go)
If you want to exit to direct investing, make sure you recruit for places that do co-investments. It's not a guarantee but possible to exit into direct
pay is similar to AM from what i've seen (AN1 ~45k AS1 ~60-75)
FYI secondaries is something that is growing and something a lot of people think will become much bigger. Hours here is between FoF and PE and so is pay (in some places nearly matching direct PE)
Are the numbers you gave in British pounds?
Bump
https://www.wallstreetoasis.com/forums/qa-pevc-fof-principal
To the comp question, I've seen analysts make anywhere between $60-100k and associates getting $80-120k. The biggest driver of this is how much co-invest there is and how much of a sweatshop the place is.
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