I’ve been exploring opportunities in PE and PERE. Some firms (& family offices) are LPs that do “direct investments in operating companies” or other real estate properties. The other firms are GPs.
If I’m planning on being an associate at one of these firms how would my day-to-day vary? (I don’t care too much about comp right now)
What skill sets would I develop that are different from LP v GP firms?
What are the exit opportunities?
If I plan on doing entrepreneurship a few years after this gig which one would be a better option?… what would be the Pros & Cons?
Any information would be great.
If you plan to go the entrepreneurial route then a GP role is more suitable as you are closer to the operating company.
The highest level difference between the LP and GP role is that the former is primarily about asset allocation and the latter is primarily about asset selection and value creation.
Typically (I know it depends) how close do LP firms get to the portfolio companies?
Do they ever drive bolt on acquisitions/strategy?
Do you think it’s worth joining the LP firm and maybe going to a GP firm in 18months if the opportunity is in hand?
The GP will keep you as far as possible from portfolio companies if you're an LP. The closest you'll ever get is doing reference calls with a few portco CEOs when you're doing DD on the next fund or possibly getting a management meeting if you're looking at a co-investment with the GP.
If you want to go to a GP and you're an LP now, the only way you're making the transition is if you do a ton of co-investment and even then it's pretty difficult.
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