Secondaries Recruiting 2025
Any idea on how secondaries recruiting would work for incoming analysts? Asking because the headhunters have already started reaching out and would love to learn more about the secondaries PE recruiting process. Also would be super helpful to know what firms use what headhunters within the secondaries space, as well as the general timeline + whether firms require an MBA for promotions or not. Thanks so much!
Secondaries recruiting is a growing and dynamic space within private equity, and here's what you need to know based on the most helpful WSO content:
Recruiting Process for Secondaries:
Firms and Headhunters:
Timeline:
MBA Requirements:
Preparation Tips:
If you're looking for more detailed insights, consider reaching out to second-year analysts or associates who have recently gone through the process. Good luck with your recruiting journey!
Sources: Private Equity Recruiting Process (From Banking), Private Equity Recruiting Kicked Off?, Secondaries Comp / Culture in 2023, PE Lateral Recruiting Advice/Stories/Help?, Senior Associate Recruiting - Timeline for Recruiter Outreach
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Historically speaking secondaries firms usually are not the first to move or jumpstart on-cycle, it's usually the buyout strategies that will cause the mad scramble for on-cycle recruiting. The past few years secondaries strategies have actually been just as popular as the traditional buyout roles so I expect secondaries firms will start to coincide or move very shortly after the buyout teams secure talent.
Secondaries recruiting is just like buyout recruiting in the sense that it follows a similar cadence of first round, case study, and final round superday with some firms deciding to add more or less rounds in between. The key difference, which shouldn't be a surprise, is you should have a real reason as to why you are interested in secondaries instead of direct investing. Secondaries players are still a little weary of applicants who are blindly applying to their roles as it's not the traditional direct style which is what almost every undergrad and new Analyst is thinking about when they think about private equity. Case study is going to be a little tougher to prepare for since it's going to depend on the fund. I've seen some funds who will still ask you to do the traditional LBO since it's basic and simple whereas others will have a very secondary-leaning case study and model round. Firms who tilt GP-led will be more likely to quiz on the traditional LBO while the LP-led players may want to make sure you understand the traditional secondary cash flow models.
During your intro calls with HHs they will ask what your preference is for strategy. You will have to be honest with them about where your interests are. You won't really fare well if you say you want to do both buyout and secondaries recruiting simultaneously unless you have an extremely good reason why you want to target both. You can express interest in both but it'll be better to preference one over the other rather than say they are both equally interesting.
Practically all of the secondaries firms will use HHs, no shot any of the large players aren't as it would be a wasted opportunity for HHs to not cover highly coveted funds. I can confirm Lexington, SP, AlpInvest, Neuberger, ICG, HarbourVest, and Apollo S3 all use HHs.
Requirement for MBA is going to depend fund by fund. Historically secondaries was a little more friendly about no need for an MBA to advance. Now that it's popular, it could be an easy extra pre-req they require to make it harder for Associates to stay on. The wave and emergence of secondaries in the past few years has really changed the industry in terms of how they source new talent and compensation. It is starting to look a lot more like buyout with how rigid it can be and potential upside.
Thank you so much, really appreciate it. Think I'll take a look at each HH's list and tell them accordingly. Although I like the idea of secondaries, especially due to it being more of a growing space, I am still interested in buy-outs, particularly if I can find a place with good growth opportunity, as buyout returns seem overall higher/higher chances of home-runs. Out of the names in particular, do you by any chance know who covers Lexington and ICG? I think I found the ones who cover the other ones from the headhunter lists that have been sent, but can't find info on that.
Also, if possible would love to get some help in narrowing down what funds to target, as my goal is ultimately to find a longer-term investing seat, ideally without an MBA, but fine with getting an MBA as long as the firm is willing to promote internally/has good growth potential.
Amity covers Lexington and SG covers ICG. Rule of thumb is a newer fund and smaller size funds will typically be open to offering career track roles and no MBA needed for advancement. It's their main selling point to choose them over an established and larger fund.
If I am in PCA, and secondaries is a really tight knit space, what are the odds that my firm will find out about my efforts to recruit secondaries?
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