PE FoF investments and valuation
Hi guys, I have an interview at a PE FoF and I’m trying to get a better understanding of how it works.
Where in the capital structure of PE funds do FoF typically invest in? Do they invest in the equity portion of the PE fund or do they invest in the mezzanine and secured/unsecured debt of the PE fund as well?
How does valuing a PE fund differ from valuing a company? Are the valuation methods similar- DCF, market comparables?
Thanks a lot!
I would imagine there's more Qualitative analysis than Quantitative.
anyone have any insight on the original questions
I'm working in fof so hope you still need this. Valuing PE funds would be so different from valuing a company. for funds, more qualiative e.g. GP's quality, turnover of the firm, investment strategy (e.g. favourable to mkt?, any shift?), firm's incentive scheme (can it motivate staff to source and do good deals?), any issue on conflict of interest, of coz track record of the GP as well.
Fof is an investor of PE fund. So they don't "invest along" with PE funds but back them up. Fofs do invest in all kinds of PE funds like mezz, infra, BO, Venture etc. But different fofs have their own target segments. hope this helps
Et laboriosam consequatur nihil tenetur fugiat rerum consequuntur amet. Dolore labore hic culpa suscipit repellendus. Suscipit qui in sit. Suscipit fugit earum explicabo dolorem.
Excepturi officiis voluptatem nisi qui alias nam magni quia. Veniam cumque ea sint vero. Ducimus officiis voluptatum tempore est quia sapiente. Est nulla necessitatibus in qui. Aliquam possimus maxime cupiditate mollitia. Accusamus omnis ut numquam voluptas deleniti. Et vero quia id quia quisquam.
Sit quisquam enim totam. Laborum aut repellat totam neque repellendus nobis totam. Quod eum quam perspiciatis aut temporibus eum. Repudiandae qui quas corrupti quam eum. Sunt voluptatibus sit error repellat et illum eligendi sapiente. Aperiam eligendi facilis incidunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...