Secondaries / BX Secondaries / strategic partners
I would love to hear people’s thoughts on the secondary market. Thoughts on blackstone strategic partners. Insight on pay / progression at bx sp / general secondary roles. I am having a super difficult time finding any info.
Based on the most helpful WSO content, the secondary market, particularly Blackstone Strategic Partners (BX SP), is a fascinating area within finance that has garnered attention for its growth and unique position in the investment landscape. Here's a breakdown of insights related to BX SP and general secondary roles, focusing on perceptions, pay, and progression:
Perception and Role in the Market:
Pay and Compensation:
Progression and Career Path:
General Insights:
In summary, the secondary market, and specifically Blackstone Strategic Partners, offers a compelling career path with competitive pay, significant growth potential, and a diverse range of investment opportunities. While it may be viewed differently from traditional direct PE roles, it holds its own in terms of prestige, compensation, and career development.
Sources: Blackstone Strategic Partners in 2019?, Thoughts on Blackstone adjusting their recruiting process?, Q&A: PE Secondaries Principal, Blackstone Investor Day Takeaway
BX SP is the real deal. Has a mothership in primaries, good name, ability to lever and recycle, time-in-market and related data pool, disciplined investment approach, connectivity to agents, fundraising prowess, publicly traded stock. The competent mid-levels-and-up over there are comped handsomely, probably much better than their counterparts at the many dogshit LMM funds out there nowadays. The carry may not be as great as top quartile primaries, but relative to other alternatives I think it’s probably quite juicy and a damn sight more dependable given the inherent risk/reward profile of the asset class.
Do you think it’s better off to lateral into it if possible or start in SP?
SP is somewhat known for not taking laterals in most circumstances. Best to start there if that's where you want to be long-term.
If you want to work in secondaries investing, there's no better place from a culture or comp perspective. So if you get an internship or FT offer there, take it - they do not hire laterals.
Secondaries market may be the hottest aspect of PE today. On track for another record year. There is a lot of activity because both GPs and LPs are looking for liquidity and this has become a good alternative exit to doing an M&A sale or IPO.
BX is one of the largest along with Ardian, Lexington, HarbourVest, and AlpInvest. All these places should be a great place to start a secondaries career and comp is going to be great at all these shops since they all have massive funds.
What about the likes of Pantheon, Hamilton Lane, Stepstone, Coller, LGT etc.? Also would you say if you are at a secondaries/LP type of shop, there is more job stability than a GP? Are these programs also 2 and out? Thanks!
Coller is another good secondaries shop, a little smaller than the others but maybe they will end up blasting through their target fundraise target and enter to the same echelon as the others. Wouldn't be too surprising since all of these funds have significantly exceeded their initial fundraise targets in their latest fundraise. Coller likes to think they were the first or pioneers of secondaries. They've been doing it longer than most and they've built out a credit secondaries arm which for some of the others, they're still in early innings. Coller may be the most advanced in credit secondaries today but think many others will catch up over the next few years.
Pantheon probably second after Coller just on momentum. Led by ex-Coller professional. Smallest secondaries fund out of the bunch but they have dabble into adjacent secondaries sectors like credit and infrastructure so a little more diversified than purely equity secondaries. Another fund that was early out of the gates on credit secondaries and have a good reputation in the space for credit alongside Coller.
LGT has longstanding reputation but don't hear them as much. They still deploy but not as flashy as the others. Still a solid place to start relative to majority of places.
Hamilton Lane and StepStone are huge AUM players but mostly syndicate players so not as great of an investing experience but they likely see a lot through their pipeline.
Most of these places haven't been 2 and out. I think they'll start to become 2 and out as more people flock to the secondaries world so would be upfront and ask these teams how they think about it if you want to stay long-term at one shop.
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