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
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?
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