Placement Agent vs Internal Fundraising at a top PE firm
Title says it all. I have interviews coming up at both a top placement agent and the internal fundraising team at a top 20 by AUM PE firm. Wanted to know if anyone had any insight in terms of compensation and potential exit opps. There have been a few threads on this, but nothing with specific details.
Compensation: Which has a higher compensation outlook as you progress? I know placement agents can get some hefty fees from first time funds, but imagine you could get a small carry allocation (maybe ~20-30% of what a deal professional would get) that would be meaningful at a fund with billions in AUM.
Exit Opps: Obviously both these roles won't be technical and set up for more marketing/sales jobs down the road, but what are thoughts on going from a respected firm in this role to a top business school or even lateraling to an entry level investment role within the firm after 2-3 years.
Can't comment on exit ops or comp really, but when I looked at those types of roles, biggest thing was making sure if internal, there is a steady flow of new funds being raised and getting a good variety of different strategies, geographies, etc. - w/ a top 20 firm, that probably won't be an issue.
I viewed it as placement agents being on the equivalent of sell-side banking, much more transactional and probably worse for work-life balance since you are at the behest of your clients.
The internal fundraising would be across multiple strategies. Definitely some interesting products. I know you said you can't comment on exit opps/comp, but do you think you could spitball on what you think comp progression would be relative to the investment team (e.g. Analyst 80%, Associate 70%, VP 60%, Principal, 50%, etc.). I imagine it could be relatively lucrative for some of the top guys (VP+), especially if they can get even a small fraction of the carry that deal team members across many billions in different strategies. I assume the head of the team would be a partner and that small amounts of carry could extend to the senior fundraisers.
If so, could you reply here or PM me? Would PM you, but have a relatively new account and don't think I can.
I heard base was the same for associates as on the investing side (at least for the MF fundraising position I recruited for), but bonus was lower. Never got to the stage where I was seriously discussing comp, sorry!
Appreciate the reply. Still think that's a useful data point for anyone considering these roles.
Also if you don't mind me asking, what made you decide to pass on the job? Did the interviews just not work out or did you have a change of heart?
Both, to be honest. But mainly I realized I wanted to be on the investing side still. Figured fundraising -> investing is a lot harder than investing -> fundraising.
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