PE Secondaries Day-to-Day
Was wondering what those of you that work in secondaries do on a day-to-day basis? I have heard it’s very modeling heavy. Can the skills be transferred to buyout if you go straight from Undergrad -> secondaries? Have a tough time making this decision, as I am picking between MM IB and Top 5 PE Secondaries fund out of college (2 offers). There’s pros and cons to both, but secondaries seems like the hottest thing right now - will it stay course/continue to grow rapidly?
Following
Secondaries will be a growing space for the coming decades so it is a great vertical to build your career if you find it interesting.
Having said that, my understanding is that they are not too modeling heavy, compared to the rest of PE.
It is not modelling heavy at all.
Beg to differ - most probably firm dependant
What kind of modelling are you even doing for secondaries?
Portfolio NAV (ie. modelling each position individually for large LP-leds)
On the GP-led side of things, continuation funds can also require extensive and granular modelling of underlying asset(s)
BX SP?
Its fund modeling (almost all reputable groups will model each underlying company as well) on the LP-side and company modeling on the GP-led side, although on the GP side you're largely leveraging the sponsor/bank provided model.
There's also a fair amount of cash flow modeling/distribution waterfalls for more bespoke transactions, which there are a lot of right now (pref deals, etc).
I would say our junior employees these days spend almost all their time modeling. But its not really a skill that's transferable to direct PE.
If you find it interesting go for it. But don't use it as a short stop to get to direct PE.
For what it’s worth, I’m considering a move into secondaries and found a random booked called “how to run a private equity fund” very useful at going over the basics. Less useful for more senior people trying to make the move though
Author of the book?
Not sure, assume it was someone who works/worked in the space given how it was written
Bump
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