Private Funds Group (CS/UBS etc)
Hi,
I was hoping someone can provide some insights into Private Funds Group at the likes of CS and UBS etc. I understand it's mainly of a fund raising capacity and not so much on direct investing (and thus exit opps are limited as compared to traditional IB) as you mainly do Distribution or Projects Management?
What are the sort of interview questions one can expect? What are the technical skills involved as opposed to knowing your valuations/accounting in IBD for example?
Many thanks!
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Another name for a private funds advisor is a placement agent. About 60%+ of GPs use them to raise capital for their funds. There are good bulge brackets (CS, JPM, UBS) as well as boutiques/spin-offs that do well in the space, most based in the financial centers of the world (NY, LON, HK). At a bulge bracket the private funds group sits in the capital markets side of the business. Like other capital markets activities, the day to day job is pretty light on quantitative things and more about your soft skills. I would say soft skills is almost more important in private funds given the $ amount and the level of sophistication you are dealing with both from a client viewpoint (GPs) and a target viewpoint (LP investors). The job is also on the extreme in the sense of how important relationship-making and maintaining is to private equity. As a placement agent you have a great view of the private equity industry, as you constantly have conversations with GPs and LPs. If anyone wants to know the pulse of the industry and what trends are happening on the ground, ask a placement agent.
The entry and exit opps sort of depend on whether you're on the distribution or project management side. Distribution is a sales function so very much smile and dial, but less dialing and more smiling and meeting with clients and LPs constantly at annual meetings, conferences, charity events, etc. Project management is the execution part, excel modeling, all the legal and general documentation work (PPM), and everyone else that is not directly sales. Good entry points are people coming from S&T (particularly institutional sales), ECM, and Financial Sponsors coverage as well people from an accounting/valuation background (Big4, PE accounting & valuation). The easiest exit opps include IR and business development roles both inside PE firms as well as F500 companies, or back into banking (see entry points). Also doable but more difficult are LP and GP investing roles.
Your understanding of the market and the asset class is paramount. The job is light on technical skills vs an industry coverage banker but expect your soft skills and personality to be tested. Understand the structure of a PPM and how to evaluate a GP manager is also important. Less important is the PE lingo and more technical aspects of the job you'll learn as you go along (waterfall of LP and GP cash flow, etc.).
how tough is it to move from private funds group to traditional IB after 1 year out of college?
Expect this to be an uphill battle, but there are a number of things that go into this for me to estimate the exact slope (how tough this will be, and whether or not you judge this to be worth it).
You're ability to build connections with bankers in other groups will be a bigger driver of your success in this move than any knowledge you gained 1 year on the job.
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oldrow what does a base and bonus look like for analysts in these groups
bump
Hi, questions for you. I am very interested in breaking into this group. I am currently in the CMBS Origination group at one of the BB banks. What's the best way to break into the private funds/private placement group?
I am also considering to go back to business school to re-position myself. But I don't see many firms have formal summer internship for this group. The only firm I saw that has a formal summer internship program is Evercore... What's the best way to break into this group for post-MBA?
Thanks!
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