Currently at a owner/operator which has a JV with a large PE fund.
I have been here close to a year in an acquisition/asset management role, i am enjoying it as its relatively fast growing however would like to be exposed to more asset classes. Previous to this, have a background in accounting/finance roles.
Just wondering how difficult is the transition to a fund which invests in multiple classes?
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I can share with you my experience. I’m not based in the US though, am based in an Asian country.
I just made the switch this year from a GP to the LP side (Fund of Funds). It is definitely challenging having to pick up coverage over different geographies and asset classes (my role covered APAC and we are invested across all major asset class, i.e. logistics, office, residential, retail), but you just got to keep learning as you go along and also kinda have a change in perspectives. I’m learning to trust the GP to execute on the fund strategy and instead value add by asking strategic questions that they might not have considered.
My view is that once you decide on a side (GP or LP) it is generally quite difficult/rare to make the switch in the later part of your career.
Transition from GP to LP is way overblown on this site. If anything, the vice versa is typically a bit more of a curveball as you going to a GP you are then forced to be involved on more day to day granular items.
I made the move from owner/operator to a LP. We still get very involved. The only major difference is it’s a bit more high level finance heavy and managing to the bottom line at times more so than on the GP side.
Completely agree. Generally speaking, LPs still exercise the same level of scrutiny during due diligence as GPs. Sometimes they may assign some due diligence responsibilities to their GPs (i.e. the GPs order PCAs, Phase 1s, etc.), but they still look at things the same way.
Also overblown is going from covering one to multiple asset classes. If you know how to underwrite one of the major food groups (e.g. office, multi, retail, and industrial), you'll be able to learn the others fairly quickly. There are nuances specific to each class, of course, but the learning curve really isn't that steep.
Depends how much experience you have. If you have been investing in a particular sector / region for 5+ years it will be harder to go to an LP where you are looking at different sectors and locations.
That is not to say it can’t be done however. Defo agree with the comment above that it is easier to go from a GP to LP than vice versa.
For context, I went from multifamily acquisitions at a GP that focused exclusively in the UK to cross sector acquisitions throughout the USA and Europe at an LP. During the interview stage I was quizzed on my commercial knowledge heavily but luckily managed to get the role. I had 2.5 years experience at this point.
Could you please share the questions / type of questions you were asked? Thank you!
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