Fund-of-Fund from a Placement Agent
Hello to all,
I am currently an intern at Placement Agent (good PA boutique), and I have been given an offer to join FT as an Analyst. I am really struggling to know what I should do.
I learned that I really like the PE space but not necessarily in a GP, and in addition it will be close to impossible for me to join one. I kind of liked my internship at a PA, but I don't see myself doing that for long even if the comp is really good.
From what I learned during my internship and past experiences, working as an Investment Professional in a FoF should suit me very well. But my question is, how hard will it be to break into one if I accept the position at this PA? Say I do 2-3 years and become an Associate, will I be able to be of interest for a FoF. I'd spend some time reviewing the investment opportunity as an agent, but it should be nowhere close to what I expect a FoF does
Is my best shot to immediately try to switch? (Previous exp. M&A in a corporate, Analyst in a newly formed Inv Fund)
Thanks
It is good to plan your next steps carefully. I would like to ask you some questions first:
1. What do you like re a FoF position? and which asset class (PE / Private Debt / Infra / RE)?
2. Where do you think the FoF will take you in 5 years? and in 10?
3. What are the benefits for a FoF vs a position in a GP?
4. Which are the main players in FoF you would like to target?
Think honestly about the answers and we can keep the conversation.
Hope it helps,
Hi truelondoner,
Thanks for helping me,
I do agree that this is the best / last moment to plan my next moves.
- If not mistaken, a job in FoF (PE) would look rather similar to the origination / execution of deals at a PA. As I am in a small PA boutique, the drafting of documents is kind of critical for the fundraising and we take care of most / all of it. That's the part I prefer in my job, and I believe a position in a FoF would be suited.
- I'd say I have no idea about were I would like to be in 5 or 10 years, because I want my career to focus on working abroad. I will consider myself "successful" if I get the opportunity to travel often or even to settle in another country. What did you have in mind with this question? A specific position / responsibilities? I would see myself as an IC member at some point in my career.
But regardless, in my view, working in a FoF would open me more doors (or close less?) than a PA. From the discussions I've had with other professionals and read of forums, it is really easy to end up locked in the PA industry. And I must say that I am quite afraid of it.
- I have considered a GP, but I am unsure of many things. On paper it appears to be way more interesting, demanding and rewarding, but I am really not sure my past experiences would match a GP expectation. Working in a GP would be a great experience, no doubt about that. But a FoF seems to be more a more realistic alternative, and working on co-investments should resemble some of a GP's activities.
- In the end, I would like to work to work at the likes of Adam Street, Ardian, Schroder or Singuler. But I guess, especially in the beginning, smaller funds would be more interesting / challenging
What do you think of all this? Thank you again for taking the time
Bump
Bump. Interested in anyone's view on this
Bump.
Bump as well.
Would like to know how feasible it is to move from a PA to any position within a LP or an investment consultancy firm (but preferably an Investment Analyst position)
Thank you!
Hello all,
I would really appreciate it if any one could give me his insights on how it would be possible for me to move from an Analyst position at a PA, to a LP -preferably a FoF
Thank you a lot!
Hopefully I can help a bit. I worked at a FoF out of undergrad and got into the co-investment space early on but also knew many people doing primary investments and secondaries. Personally, I’d never seen someone in my own firm or at others on the investment side that had come from the PA space, but definitely think it is possible if your knowledgeable on the industry and specific asset class/team you want to join. Also, primary investments would be your best bet and anything more analytical might be a stretch. I would also narrow down the firms you reach out to. I don’t think you’d easily be able to join an Adams street, alpinvest, Ardian/Hamilton Lane (unless starting at the analyst level). Some or these firms typically promote from an analyst program or hire from IB at associate and up , but you could definitely target firms like Cambridge associates, etc. or other smaller firms
That is great, thank you very much for your insights!
From my perspective it also makes sense for me to favour primary investments rather than secondaries and co-investments. Issue is that I have little view on what my day-to-day work would actually look like
In any case it is nice to hear that I still have possibilities to leave the business in case I do not like it anymore / wish to change
Do you think it's possible to go from a FoF co-investment role to a buyout PE and if not, how difficult do you think it is to lateral from a FoF to IB?
I used to work at a PA (in secondaries advisory) and made the move to a large LP - I honestly think it's easier to move from secondaries advisory as it's a more technical role and I've seen numerous people move from secondaries advisory at a PA to secondary buyers/FoFs.
However, for pure FoF primary moves, it's a bit more difficult given the perceived technical skills/training is lower from the fundraising/primary side at a PA. In addition, people typically move from FoF to PA because of higher salary (most FoFs don't pay much carry if at all and have lower base/bonus) so I've personally never seen an ex-PA fundraising professional at a FoF
Thanks, it makes lot of sense
I am working on some secondaries although this is not my main line of work. But I guess it would allow me to move to another line of work if I ever wanted to. I'll try to take on more responsibilities on secondaries if possible then and could consider to make the same move in few years
Hey I have worked in PE FoF Primaries. FoFs compete on different fronts (more co-invest, niche managers, etc.) so I think it wouldn't be too difficult if you market yourself correctly. If you are a PA with good connections/experience interacting then it shouldn't be impossible to at least be considered for an FoF junior investment role.
FoF primary investing day to day will depend on the level and firm structure but generally, you will be on call more than other finance roles at all levels as much of FoF is being in the know about whats going on in the market place. At junior levels you will also be doing diligence and writing memos. On the technical skills, for a pure primary, you don't need to know how to create an LBO model but you do need to know the workings, value creation strategies and its impact on returns, comp valuations, etc. as you will be looking into the GPs track record. However, overall, primary investing is more qualitative, at least at my firm,
Commodi delectus odit sed. Est vitae eius autem culpa animi eveniet modi autem. Enim eos in odio laborum porro quia fuga. Non aut odio eum sint.
Dolores corporis maxime iusto modi vitae et maxime laudantium. Ab architecto nobis dolore. Et ducimus dolore omnis enim eveniet sit repellendus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...