What are the safest sectors on the buyside for private capital (PE, PC, Special Sits, REPE, Infra, etc.) for an upcoming recession? Is it similar to banking where junior levels are relatively protected and the mid levels at risk? I imagine that its generslly far more insulated than the public side and IB due to locked up funds and longer time horizon. Would appreciate anyone else’s thoughts.
| +58 | Working on Juneteenth | 32 | 17h |
| +24 | From Public Equities to Private Equities | 4 | 4d |
| +22 | Hardest time I have ever seen to be a GP | 3 | 18h |
| +18 | Weighing exit from LMM PC/PE | 1 | 3d |
| Search Fund Internship Vs. Internship at my family's Family Office | 10 | 13h | |
| +15 | KKR comp for Principal | 10 | 6h |
| +14 | Anyone have intel on Aterian Investment Partners? Culture, Comp, Performance? | 9 | 4d |
| +13 | Healthcare PE | 6 | 1d |
| +12 | LMM groups within larger platforms? | 1 | 5d |
| +12 | How to Get on Career Track / Stay Post ASO years | 4 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
RX just gets busier
A 1.5-2.5% annual fee backed by high quality counterparties that goes for 5+ years is a pretty high quality business model. Yeah, if rates stay high and we go into recession I wouldn't want to be raising a first time fund or at a seed shop, but job security shouldn't be a major concern for most folks.
From what I've heard from the people who left to buyside, no one really gets fired because there aren't that many people to begin with and the embarrassment of firing people and having them jump to your competitors is much worse.
There's only a risk if the next fund is drastically smaller than the current fund. Given how strong returns have been across the board over the last few years, I think it would take a while for the upcoming recession to dramatically impact fundraising.
Distressed and special sits are two that hold up/really shine during recessions
Reiciendis accusamus nemo totam sapiente. Ullam doloribus dolorem est possimus quisquam enim. Vel perferendis debitis quisquam voluptatum est similique excepturi.
Vitae repellendus ex voluptate id et eaque ea. Autem veritatis necessitatibus at eum ad aut aliquam. Sint et ducimus iste excepturi ipsam. Velit reprehenderit ipsa saepe eum tenetur.
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...