PE FoF Compensation
How does the fee structure of a Private Equity Fund of Funds differ from a PE Fund's?
What is the compensation at a PE FoF for an associate and VP compared to a PE Fund?
I actually wonder if you also have carry at the Associate level.
I guess, some do but it would be great to have the insight of somebody who is working in this field.
Coming from IBD, everybody looks down on Fof, personally I think that if you don t have to pull all nighters like we do and that you r making good money...
Reviving this thread. Curious what carry & total comp is like at a big PE FoF like Lexington, Ardian, Coller, StepStone, HL, Landmark, etc.
Sounds like it’s less than direct PE but not substantially less.
Do you know what are some of the highest paying FoFs?
Not sure, interested in that as well lol
Also curious if any updated views on career optionality if one goes down this path. Could you exit to growth equity, structured equity or VC? Or are you stuck to more boring buyouts strategies?
Bump
Edit: whoops was not sober and very much missed the question
PE FOFs are usually lower in fees than a traditional PE fund. Eg 50-100 bps and 5-10 % vs 2/20. From an investor point of view those numbers are cumulative.
Carry is lower but more reliable as it is spread across a number of high quality managers.
Thanks, Franco. But what does that translate to in terms of comp numbers? Heard the carry pool is phenomenal at Alpinvest & similar places.
Generally, Carry allocated VP and above. Usually at a sector level (eg get carry across each PE fund which would typically include FOF, co-investment and secondaries fund).
Think VP carry allocation might be about 50 bps.
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