Secondaries PE / PCA outlook/insight?
I know secondaries is a fast growing space, anybody have any insights on outlooks for the space for the coming years if I were to get into PCA or secondaries pe?
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Been lots of posts on this recently. I'm a Principal at a secondaries shop (buyside). What do you want to know?
hey thanks for the response, I’m going into SA next year at a PCA team, are exit ops mostly into secondaries buyside positions?
That would be the most logical exit but maybe 1/10 actually make it out to the buyside, if not lower.
The industry is evolving. GPs are getting activity involved in secondaries in order to both provide liquidity to LPs and cash in on the fee game. Be sure the shop you go to does GP leds.
Got it, ya partially got into the space because it's still evolving and there's room for innovation and growth within gp-leds.
I had interviews lined up w some lower tier traditional IB places and corporate client banking at higher tier firms, do u think I messed up by not doing those?
I think you're probably too young in your career for any of your decisions to be a mistake. Private Capital Advisory isn't Investment Banking, it really is what the title suggests. If you're the kind of person that wants to build and tinker with models then an IBs Sponsor Coverage Group would probably be more appropriate but you wouldn't be as client facing, unless your clients are of course the GPs themselves. A lot of PCA teams are being integrated into Sponsor Coverage groups, which I think is smart. I created a thread recently where I ranked out a lot of the Secondaries Advisory shops. If you want any info on my thoughts on a shop on the buyside or sell-side let me know.
Would caveat this with the fact that on average, secondaries on the sell side pays more than on the buy side, so the transition is not as intuitive as going from M&A to PE
At the analyst level, exit opps span the full range: secondaries buy side, niche PE, FoF, lateral to another IB group, etc. The industry is very young still so would expect exits to continue to evolve. A2A is also an option and has become more compelling with the recent comp raises
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