Comments (5)

Dec 29, 2018

Hey neil91, the following topics might be helpful:

  • PE FoF Co-Investment versus IB for Private Equity back, but doesn't really touch upon what i'm looking for. private equity career PE equity ... Looking at an analyst role at a fairly large PE FoF in their co-investments group. invests between ... which group as of now) for private equity recruiting? anyone have any input on compensation? i've ...
  • PE Associate- Co-Invest Do most private equity firms allow associates to co-invest in their fund? coinvest private equity ...
  • Is PE FoF and Co-investing a dead end? advancement, etc? fund of fund coinvest private equity ... about PE FoF and co-invest opportunities at higher levels (Principal / Junior Partner). Firms are ...
  • Advice Needed: Private Equity Co-investing vs Private Equity Secondary is a role in the private equity co-investment team while the other is for the private equity ... I recently received two offers, both of which are from private equity fund of funds. One of them ...
  • Introduction for co-investment opportunities investors interested in co-investment opportunities with a private equity firm; specifically, a PE firm that ... private equity hedge fund coinvestment introduction ...
  • From Private Equity Associate to VP in Private Equity know is right here. Private Equity Job- What Do PE Associates Do? PE associates' days are ... to Become a PE Associate Before we tell you anything else, understand that private equity recruiting ... Opportunities out of PE Private equity is seen by many as the endgame, but what about for those who don't ...
  • How modeling intensive is FoF / Co-invest / Secondary positions? co-invest opportunity? Wouldn't most firms leverage the firm's existing models & ... assumptions?...would you simply be recycling the PE firm's existing modeling and adding in a projected LP ... such an in depth analysis for every opportunity that passes across their table, nor would they have the ...
  • More suggestions...

Fingers crossed that one of those helps you.

Most Helpful
Jan 1, 2019

For people that do private equity co-investments alongside General Partners, what does your analysis tend to focus on? Do you tend to create your own models or are you modifying assumptions and casing the GP's model?

Modifying GP assumptions. Sometimes if we feel a certain part isn't detailed enough we would break the model and insert our own assumptions. For example, if management only takes into account growth capex, we would make an assessment of maintenance capex and factor that into the model.

The bulk of the analysis focuses on stress testing the assumptions. How silly can your assumptions be that still gets you to your desired returns. For example, if the company has been well over industry growth rates. If you just assumed it grew at market rates and be able to get to your returns, then it is an easy sell at the IC. I had one case where because of the structuring and low entry multiples, we could assume the company growth declines and we could hit our targeted returns, another very easy sell.

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Jan 1, 2019

Yeah, my team usually takes the base GP model and then we'll diligence all the inputs and assumptions and tweak them as needed. Lots of building in different cases - GP case vs our baseline, upside, and downside cases.

You're absolutely right we will break the model and insert our own more complex builds for things as needed. Always layer on LP returns on top of course.

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Jan 5, 2019

Thanks guys. How do you then monitor your co-invest positions? Do you get quarterly reports from the portfolio companies? Also, if a platform company makes an add-on acquisition, will you then update your model?

Jan 5, 2019
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