PB shops with PE funds

Billion with a B's picture
Rank: Human | 16,505

Hey guys-

I am looking at banks with PB functions (so think MS/GS/Citi/Boutique PB) that also raise Private Equity funds. Would the PE fund be considered an investment manager from an operational standpoint? Investment Advisors in PB typically recommend asset allocation strategies to their clients, so I'm wondering if an investment manager that an adviser might recommend can be the internal PE shop.

Comments (10)

May 3, 2016

Yes, the PE fund is considered the investment manager. I'm pretty sure from a PB standpoint, the only PE allocation they can recommend would be the bank's internal funds.

    • 1
May 3, 2016

Have an SB! Thanks :)

May 10, 2016

this is not correct. the best shops that allocate to alternatives (specifically ms, ML, GS) are agnostic. sure they have their own funds, but they can also get into Blackstone, oaktree, och ziff, etc.

OP, what you'll find is the PB model will be mostly proprietary and the PWM model will be mostly outsourcing.

example:

PB: JPMPB, GS, US Trust, Northern Trust, Brown Brothers Harriman, etc.
PWM: UBS, Morgan Stanley, Merrill lynch, Wells Fargo advisors

I think DB and CS are PB model, but not sure, never competed with them.

May 10, 2016

Do you know why the two diverge that way? Seems like PBs aren't registered as 'advisors'. Is that true and have something to do with it? I want to know whether or not PBs work very closely with their PE fund vs external managers like AM or HF. I think it would be fun to be on this BO/MO desk

May 6, 2016

To follow up, if I were to land a role in PE Risk Management, focusing on 'non-investment' due diligence review, how much exposure would this give me to the actual fund if I wanted to move over to the front office?

May 6, 2016

It'd be hard to say without knowing more. Different shops set up things differently but my first instinct is that PE Risk Management probably focuses on sifting through the documents of clients interested in the fund, proving the are AI/QP. I've never heard that title though, do you have any job description blurbs?

May 6, 2016

Directly from the job post

* Prepare materials needed for the due diligence of Investment managers
* Review the documentation managers submit to firm including due diligence questionnaires, offering and deal documents, financial statements, regulatory filings and policies and procedures.
* Draft due diligence reports documenting the due diligence performed
* Perform on going media reviews of investment managers.
* Follow -up on action plans as well as items arising from the Private Funds Risk Oversight Committee.

Sounds like compliance although it says nothing about analyzing or working within the regulatory framework.

May 10, 2016
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