Hello, I will soon be transitioning to an associate role at a MM PE shop ($1-1.5bn latest fund) that has never taken analysts, until this year. My group will have some analyst, and I am trying to figure out how the associate/analyst dynamic typically works in a PE setting. I have tried using the search function on WSO, but have largely come up empty handed.
I understand the PE associate role very well, but am struggling to find the exact role of PE analysts. Is it similar to banking analysts? In a typical PE setting, the associate models and puts together the majority of the IC materials, so what does an analyst do? If the analyst is in more of a supporting role, what does that typically look like? Further, my group will have an associate-to-analyst ratio of ~2-3:1, so there is no conceivable way an analyst would be able to do work resembling that of a traditional banking analyst since in banking, the associate-to-analyst ratio is closer to ~1:2 (flipped).
Apologies in advance if this is a rudimentary question, I just want to start off on the right foot at the new gig and have a healthy working relationship with the analysts. Thanks a ton in advance.
No, its a good and valid question. Not at a traditional PE shop, but now an associate at a larger shop in NY that invests cross capital structure (so debt and equity) after being an analyst for 2 years. Analysts typically act as a supporting role in working on parts of the investment memo or parts of the model and helping run the DD process and doing a lot of the grunt work such as building customer retention / churn data charts, working on diligence lists, etc. Basically they act as support on deals so you could theoretically focus your time on the memo while you outsource the model to them. That's how I'd characterize it
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