PC vs PE
College junior here, what is the difference between PE and PC? Seen the term PC thrown around on this site and was wondering if I could hear a broad overview?
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Broad overview comparing the two:
Private Equity: Focus on equity (can very depending on the stage of the company: Growth, Buyout, etc), where you really perform a much deeper analysis in fewer companies. Few new transactions each year with good amounts of PortCo work, Financial engineering and/or operational improvements to create IRR. Lifestyle gets worse as AUM increases- (correlation). Very good pay with potential carry at the associate level for certain funds. Exit ops include: other PE funds, HF, corp dev, MBA programs.
Private Credit: Focus on various types of credit (1L, Senior Stretch, Unitranche and/or 2L, PIK, Warrants), Less deep analysis focusing on credit story but look at numerous companies, Several new transactions each year with some work on existing investments, Principal payback and Interest coverage to create IRR, Lifestyle much better (8:30am-8:30pm with some weekend work), Very good pay (generally a little less than PE) with less volatile Carry, More a career move or opportunities include: Credit HF, other debt strategies, maybe PE or industry if you want.
Thanks for the response this is very helpful. How do opportunistic funds fit in here (Apollo hybrid, sixth street, blackstone tact ops)
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