Was wondering what the work-life balance was typically like in a group that focuses exclusively on Co-Investing within a fund? While I've read that roles in FoF generally have somewhat ligher hours/intensity than traditional PE, I'm assuming Co-Investments would be more intense given the need to meet the timelines of PE firms and constant execution. In general would hours/lifestyle be closer to traditional PE or closer to primaries/secondaries?
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Any insights appreciated!
Secondaries can be brutal due to the sheer number of lines you need to underwrite. Some of the larger portfolios are 200+ assets. If your firm gets super in depth on each asset. Also timings given by agents can be extremely accelerated to avoid a new reference date.
insight on comp trajectory relative to buyout peers?
Not totally clear but I'd think its relatively close to banking step by step. I have heard of starting being around 200 - 270 for post banking associates but no idea of progression past there.
One thing about secondaries is that you see people going back and forth across buyside / placement agents / banks a bunch. Almost every single process is baked in some fashion so I can't imagine its that high on the top end unless you found your own firm.
I'm at a multi-strategy firm that has a huge secondaries arm so I shoot the shit with those juniors a bunch.
I work at a large asset management firm that has significant funds across primaries, secondaries and co-invests. I am a Principal on the co-investment team. We all get paid the same base and bonus irrespective of whether we are in primaries, secondaries or co-investments. However, carry differs significantly. The secondaries group make out like bandits due to the size of their fund, which is rapidly getting to the size of some of the larger direct PE funds. Carry is next highest for the co-invest group and even though our funds have also grown significantly, we are still much lower than the sec group. Primaries guys obviously gets the least carry both due to size of that platform and overall lower carry % in funds. The overlords above make the co-invest team kick back a good chunk of our carry points to the primaries guys since we need them to engage strongly with sponsors to help our dealflow.
Our Associates all come from IB backgrounds, which is an absolute requirement for us. We pay them pretty much what they can expect to make at a UMM / MF PE fund in a Tier 1 City. The co-invest and sec team grinds it out, 80-90 hours are not uncommon during busy times. The primaries team seem to have it pretty easy, most seem to be out of the office around 6pm.
As you can see, when it comes to pay, what matters most is the size of the Fund you are working for rather than which group you are in. Personally, I can't see myself working in primaries or even in secomdaries, despite the increased pay. I love working on deals, I enjoy the little details of the acquisition process too much but couldn't care all that much for the value creation process, as long as the lead sponsor does a good job at it.
If you are like me, take the co-invest gig. If on the other hand you couldn't care less about the impact of working capital pegs and intricacies of the management incentive plan and want a much more higher level job, take a primaries gig. If both sound somewhat interesting or you are just not sure, take a secondaries job.
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