What is GS Private Equity like?
I'm looking into Goldman Sachs Private Equity Investing Associate roles, these are part of GS Asset Management Division. I found a vague review on WSO talking about long hours, but nothing besides that. Can anyone please provide any details on that role?
I'm trying to understand the hours (London) and overall WLB and what that role is actually about. Is this more or less a similar role to a PE Investing role at a PE firm, or is it strictly Asset Management?
What pay does that role offer? Can you please provide some insights?
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Endless internal IC meetings to get a deal approved. By the time a deal is approved you’ve already been outbid. This means GS PE invests in a bilateral basis with companies it has a relationship with. Cost of capital is lower than traditional PE firms so comp is lower.
Why is cost of capital lower?
Would also appreciate this explanation. Bump
This statement makes no sense at all. If cost of capital is lower, it is implied you can outbid other parties who have a higher cost of capital.
Comp is likely lower because it is part of GS, and not a PE firm, so the unit economics are not tailored accordingly
Lower risk appetite so cost of capital is lower
what part of high risk, high return - which is the fundamental principle of investing - do you not understand? What makes you think this doesnt tranlate into pay structure. If you're looking for high returns, you take more risk which means you compensate for the skill level required. doesnt tranlate 100% but this is typical.
Have a couple of boarding school buddies who worked at GS PE. Split between corporate equity and growth. It’s basically GS IBD 2.0 - very long hours and a ton of time to get a deal past IC. Long hours shouldn’t be a surprise given it’s GS.
Hope this helps
Thanks for letting us know that they were your boarding school buddies, really adds a lot of context!
That’s typically the path for at any top shop - should be obvious
what is the pay (base and bonus) like compared with IBD?
Starting pay is 20k less than IBD in the US. Hours are variable depending on your office/team. Be prepared to work very long hours at a moment's notice if you are a new hire.
Worked there. It's banking 2.0. It's not bad culture, there's just no culture/no 'team' at all. Work hours are long (rarely for good reasons) and pay is shit compared to MFs. Might as well do IBD at Goldman and exit to a proper fund.
Is this True for US too?
did you work there as an analyst or an associate? just trying to understand possible exists to proper PE later on, though I'd be joining at the asso level if at all
The GS PE team consist largely of former GS bankers (really top performers) that made the internal transition, as the seat is essentially a buyside role situated within the firm (to my knowledge, this group was formerly part of MBD prior to being absorbed into GSAM Private). As such, the role is very coveted. If there is a seat open (typically at the FT experienced analyst / associate level), the hiring team will interview everyone in the market but will likely draft an internal candidate unless the other party in question is exceptionally qualified. In terms of deal process, IC takes forever to issue an approval. Good place to be if you can score the role to build a foundation / get reps. In terms of WLB, hours could be long and would view as banking 2.0 (echoing comment on top - prob best to try the typical 2 years of IB then lateral into PE elsewhere as comp is okay but nothing exceptional due to cost of capital / selectivity of deals).
Thanks, really helpful. What location (the UK or the US) are you mostly referring to?
Largely geared towards US (NY / the “mothership”), however, noted points will likely translate to the UK side as well given the folks who run the platform. Only notable difference being that the UK team is leaner.
The top guys go to MF, they don't stay at GS. Why settle for lower pay and constantly in conflict with sell-side? Likewise, very non-operational role, GS don't have any operating partners which give other MF an edge when bidding for assets. Very nepo heavy team as well, especially in LDN
I do agree with that, MFs seem to be a better choice. Though what caught my and my friends attention is the fact at the associate level they are open to candidates with other backgrounds than typical ones (IB/consulting). I don't recall it precisely, but I guess they also accepted backgrounds like finance at corporates and corp finance that was not IB. And that was actually only mentioned in their associate role description in London, the rest of markets (France, the US, Italy) was recruiting people with IB/Consulting backgrounds. Speaking of nepo hires in London, is that rather at the analyst level, or asso as well?
what's "okay" comp? i heard GSAM PE pays in line with other MFs at the ASO level...not the case?
CD&R Aso1 comp is 300k all in. Some MFs lagging slightly behind that. Do you think any asset management role within GS will pay their ASO1's anywhere near that when their bankers don't even make that?
Oh wow, didn’t know CD&R associate 1 comp is only 300k, thought it was much higher
Apollo is 350k
Which salty GS PE kid just hit me with ms? Show me an associate 1 at GSPE (Any BB PE in fact) making 300k TC and I will show you a bloody liar!
Have worked across from these guys on the sell-side. Sounds like endless iteration and can't get out of their own way on any deal we've shown them (even areas where they have an active thesis).
lmao
On the same floor of the London GS PE team - every junior will probably escape if they had the chance. Don't know why they are there every night till 2am without many deals closed. Comps is the same as IBD (at least base) bonus really vary but nothing close to KKR Blackstone or Apollo if you are looking for those numbers. Promotion is terrible as well they only promoted 1 out of 4 senior analysts to associate last year (which is very rare across the floor..)
contrary to the above, have heard that lifestyle is pretty good relative to other UMM / MF and comp is in line with the UMM / MF. And always seems to be raising larger vehicles
Tbh I'm reading all those comments referring to London and feels like you are guys talking about two different companies lol many things are very contradictory
Comp is not in line with UMM/MF. Market for MF associate is ~$330k-360k all in, and GS PE isn’t close to that.
Idea for London?
Lol obviously the same as nyc but with the cons even worse
No idea on London, but pay is just significantly lower than UMM/MF in NYC. NYC UMM/MF's are paying north of 300k+ with most of the MFs paying 350k+(maxing out with Apo at 500k+). GS PE simply doesn't pay like that. GS PE is really closer to the average MM shop, your pay will be ~250-280k. It's a slight haircut to the top MM's/lower UMM's in NYC but roughly in line with the average just another middle market buyout shop.
Apollo NYC is paying first yearAssociates $500k all-in comp????
I worked there for 2 years.
In terms of actual work — great learning experience, extremely strong seniors and you do a lot of deals (think they signed 3 in last 6 months for example). Invest from a $10bn classic LP raised fund with 10% coming from GS B/S to align interest with the bank (currently on the road to raise another mega fund).
Flip side of execution/deal focus is long hours and some influence from the IBD culture with long memos / internal processes, and negative impact of being also a bank is more compliance / admin / legal tasks for juniors vs competitors.
Comp is below MF at junior level (-20%) but in line VP and above. Carried senior associate and above.
Overall very strong franchise in Europe and also a lot of alumni in all mega funds.
Thanks, that's really helpful. Did you join GS PE as an analyst? Also, what you have in mind saying long hours? Asking because GS IB can be like 2-3am with weekend work, but I'm assuming their PE doesn't have such hours
Yes analyst.
Hours are a better than IBD. Excluding live deal at junior level would say 9am-10pm on average with ability to leave earlier as no face time culture and limited weekend work. Live deals are tough like everywhere else but genuine all nighters are extremely rare.
Good teamwork within deal teams with associates and junior VPs working pretty hard and supporting juniors
Out of curiosity, what team were you on (Co-investing, Secondaries, GP Stakes, etc.)? And assuming you are in NY? Thanks for sharing the insights!
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