Blackstone Strategic Partners - thoughts?

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Rank: Gorilla | 526

"Strategic Partners provides a unique opportunity to achieve a valuable learning experience working in the secondary private equity industry. Strategic Partners manages funds with approximately $11.0 billion in committed capital and seeks capital appreciation through the purchase of limited partnership interests in high-quality private equity funds from current investors seeking to sell their investments prior to the termination of those funds. Strategic Partners pursues secondary opportunities in leveraged buyout, real estate, venture capital, mezzanine, distressed securities and fund of funds."

Any thoughts on this gig at the analyst level?

Comments (30)

Aug 22, 2013

it's buyside bro.

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Aug 22, 2013

They recently bought this business from Credit Suisse. Good people. Interesting work and they make $.

Sep 16, 2019

The work isn't that interesting.

Aug 22, 2013

I know a guy that interviewed there. They said the guys aren't too bad but he's not going to accept if given an offer.

The fact is this this is not real buy side. This is a group where your skills will only really be directly transferable to fun of funds afterwards. You are going to buy and sell LP s stakes in PE portfolios - so you're going to do safety analysis. You also won't be evaluating companies like real buy side.

On behalf of my friend I talked to a good number of contacts at the big PE shops and I had multiple people say they would never consider an analyst coming out of that compared to a solid IB analyst.

Consider this harsh but that comes strait from MD's mouths at shops like Bain/TPG/GA with regards to this exact group.

Flip side though -- I hear BX is good about internal mobility and we all know they pay very well.

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Aug 23, 2013

Not sure where you heard Blackstone is good with internal mobility. BX recruiters and several people working there have told me that outside of the few people who manage to move from M&A or R&R to buyside within the firm, internal mobility is extremely difficult. The example a recruiter used was that, unless there was a phenomenal explanation or set of extraordinary circumstances, a fund of funds analyst would not get into the private equity. Not sure if she was referring to baam or strategic partners though.

Oct 11, 2014

Anyone have any updated thoughts on exit opps? Would primary PE or HFs be in the cards?

Oct 12, 2014

^ anyone?

Oct 12, 2014

It's their secondaries group that they acquired from CS a few moths ago.

Don't know anything group-specific beyond that. I imagine a secondaries interview will probably ask you things like "why would somebody invest in a secondaries fund" (j-curve mitigation, vintage year diversification) and other high level PE concepts like walking through an LBO.

Oct 12, 2014

Can confirm the above is correct. There's very little information out there about these guys, but its basically a fund of funds. I'd check out this thread (//www.wallstreetoasis.com/forums/Blackstone-strategic-partners-thoughts) and look up Credit Suisse Strategic Partners for more info. While at CS, these guys were some of the busiest secondary PE groups on the street. It's a pretty small team though (

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Oct 12, 2014

Thanks guys for the advice. Anyone else have additional info, by any chance?

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Best Response
Oct 12, 2014

I'll give a high level overview of secondaries for anyone here that may be unfamiliar with the concept:

So a secondaries fund is a fund-of-funds that focuses on purchasing existing LP commitments in actively investing funds; in contrast, a regular fund-of-funds makes commitments to new funds. So what is the purpose of a secondaries fund exactly?

1. J-curve mitigation: by buying existing interests, you won't have to wait as long for realizations to occur. The typical return profile of a secondaries fund looks sort like a J rotated 90 degrees clockwise - IRR begins relatively high then slowly declines and levels off.
2. Vintage year diversification: rather self-explanatory but you have more control over which vintage years go into your portfolio.
3. Reduced blind-pool risk: when making a secondaries purchase, part of the diligence process entails reviewing the underlying portfolio companies of the fund that you're looking at and can examine the GP's assumptions and overlay some of your own. The amount of blind pool risk can vary by the fund's strategy- some secondaries focus on relatively unfunded commitments (30-50%) while some target more highly funded commitments (up to 80%).

The biggest drivers of value creation are the quality of the assets purchased and the discount at which you acquire it; sometimes commitments in top-tier funds of that vintage can sell at par or even at a premium. Additionally, some secondaries funds use leverage.

edit: Something else key I should probably mention - why would somebody want to sell their commitment to a fund, anyway?
1. Portfolio construction: maybe they changed their allocation to alternatives and want to unload a few commitments to rebalance their portfolio.
2. Liquidity:the secondaries market allows for liquidity in what has traditionally been a very illiquid asset class.

Hope this is helpful.

Oct 12, 2014

Thanks for the details... much appreciated

Jun 3, 2018

Thanks a lot for your thorough explanation! Any idea on what the case interview may look like?

Oct 12, 2014

Hey man when's your interview? I'm not sure if their investing strategy has changed at all, but I just dug up some old docs from their time at CS. Might prove to be of use to you...just shoot me a PM and I'll be happy to send you a copy.

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Oct 12, 2014

Just sent you a PM

Oct 12, 2014

I got a Skype interview as well, not really sure what to expect/prep for?

Oct 12, 2014

Any superday invitations out yet? Apparently it's this Friday.

Oct 12, 2014

I had a skype interview last Thursday and am waiting as well. Best of luck.

Oct 12, 2014

superday is tomorrow. Anyone have any idea what to expect for these interviews? What kind of technicals/how hard?

Oct 12, 2014

any one who attended the superday hear back yet?

Oct 12, 2014

*

Jun 1, 2018

Trying to jumpstart this thread again. Can anyone shed some light on the interview process?
I have one in a few days and would appreciate any pointers or things to aid in my prep.
Thanks

Oct 30, 2018

How did it go? What types of questions did they ask if you dont mind sharing? Have an interview for SA strat partners irbd coming up

"I'm talented in a bunch of different areas" -Kevin Durant

Sep 13, 2019
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