Secondaries Advisory Interview
I have an interview with a secondaries advisory firm coming up and was wondering how to best prepare for the technical round. Been reading up a lot on secondaries transactions but should I expect similar questions to a normal PE interview?
Also as someone who would eventually want to become a hedge fund/pe principal, is secondaries advisory a feasible career path right now? or will I be locking myself into a niche space. Thanks!
Ah, diving into the world of secondaries advisory, are we? Let's peel this banana step by step, based on the most helpful WSO content and insights from previous threads.
Preparing for the Technical Round
In your upcoming interview with a secondaries advisory firm, it's wise to anticipate a blend of questions. While there's a strong focus on secondaries transactions, the technical round might indeed share similarities with a traditional PE interview. Here's how you can gear up:
Secondaries Advisory as a Career Path
Venturing into secondaries advisory can indeed be a strategic move, especially if you're eyeing a future in hedge funds or PE as a principal. Here's why:
In conclusion, while secondaries advisory is somewhat specialized, it offers a rich learning ground and can serve as a stepping stone to broader roles in PE or hedge funds. Just ensure you're continuously expanding your skill set and network to keep your career trajectory flexible. Good luck with your interview, and remember, every step you take is a step towards your ultimate goal. Keep swinging from vine to vine until you reach your destination!
Sources: https://www.wallstreetoasis.com/forum/private-equity/on-cycle-recruiting-2018-what-to-expect?customgpt=1, Guide for Investment Banking Full-Time Recruiting, https://www.wallstreetoasis.com/forum/investment-banking/non-target-to-bb-ib-sa?customgpt=1, Don't get OfficeHours., Q&A: 2nd Year Analyst at McKinsey in Europe
Based on the most helpful WSO content, preparing for a secondaries advisory interview, especially the technical round, does share similarities with preparing for a traditional PE interview. However, there are nuances specific to secondaries transactions that you should be well-versed in. Here are some tips to guide your preparation:
Understand Secondaries Transactions: Make sure you have a solid grasp of the basics of secondaries transactions, including the types (LP interest sales, GP-led restructurings, etc.), the reasons why LPs sell, and the valuation methods specific to secondaries.
Valuation Techniques: While traditional PE interviews focus on LBO modeling, secondaries advisory might require you to understand how to value portfolios of investments and apply discounts or premiums based on liquidity, fund age, and underlying assets. Familiarize yourself with these nuances.
Market Trends: Be aware of current trends in the secondaries market, including recent deal sizes, major players, and sectors that are seeing increased activity. This knowledge can demonstrate your interest and understanding of the space.
Technical Skills: Brush up on your financial modeling skills, particularly around portfolio valuation and analysis. While the core skills are similar to PE, the application can be quite specific to secondaries.
Regarding your career path question, moving into a secondaries advisory role can indeed be a strategic step towards a career in hedge funds or PE, especially if you leverage the skills and network you develop. Here’s why:
Broad Exposure: Working in secondaries advisory gives you exposure to a wide range of funds and investment strategies, enhancing your understanding of the private equity landscape.
Networking Opportunities: You'll interact with GPs and LPs, building a network that can be valuable when looking to transition into a direct investment role.
Skill Development: The analytical and valuation skills you develop in secondaries advisory are transferable to PE and hedge fund roles.
However, it's important to be mindful of the potential for being pigeonholed into a niche. To mitigate this, focus on building a broad skill set and seek opportunities within your role to work on projects or transactions that are relevant to PE or hedge funds.
In summary, a career in secondaries advisory can be a stepping stone to your ultimate goal, provided you are strategic about the skills and networks you develop.
Sources: https://www.wallstreetoasis.com/forum/private-equity/on-cycle-recruiting-2018-what-to-expect?customgpt=1, Guide for Investment Banking Full-Time Recruiting, Don't get OfficeHours., Q&A: 2nd Year Analyst at McKinsey in Europe, https://www.wallstreetoasis.com/forum/investment-banking/non-target-to-bb-ib-sa?customgpt=1
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