Secondary PE out of undergrad?
Currently an undergrad senior with FT offers from a non-high tier IB and a secondary PE shop. I already know what I'm getting from the investment bank, but the secondary Private Equity industry grabbed my attention because it seemed like less "dummy work" than banking.
I've been searching for forums about pre-MBA secondary PE jobs, but it seems like most people consider the exit opp to be secondary PE itself. Just wanted to see what you guys thought about secondary PE out of undergrad, and what I should be looking for in a shop at this stage. Also, would appreciate any information on what people do after a stint in secondary PE (what do people typically do with/without an MBA).
Edit: For context, the PE firm has about $1B in capital committed in their latest fund, and like $5 billion total over 3-4 funds. Is this considered small in this sector?
Thanks to everyone in advance!
Because secondaries is a subset of banking services/investing, would be helpful to understand the work you'd be doing at the boutique IB. For example, if it is M&A or otherwise highly strategic in nature, you might still get a higher quality experience at the bank. Additionally, I am generally a fan of starting on the sell side as it helps jumpstart your network early in your career.
Hey, really appreciate your comment. I would be working in the M&A group but the bank itself is kind of industry specific and more MM. Obviously, really glad I got the offer but just wanted to understand some potential options. With how competitive PE recruiting in general is, do you think the banking experience would yield better than PE secondaries? Also interested to hear about the differences in network you think IB and something like this would have. Thanks again.
I don't think you can go wrong with either role to be honest.
To elaborate on my earlier note: I think a lot of people view PE secondaries as an exit opportunity from banking itself and I don't disagree with that. Would note that as "exit opportunity" implies, I think you'll have less long-term optionality going to a buyside firm immediately out of school, especially one with a more niche strategy than the typical buyout/growth equity/etc play.
Regarding the networking aspect, at a sell-side shop the turnover at the junior ranks essentially guarantees you build relationships with others who will quit and go on to do cool things at other areas of finance - this is the start of a great and diverse network that you can leverage later for relationships, information, jobs, and even deals.
Going to sell-side and then buy-side will also give you a chance to "level up", as it is easy to upgrade the tier of your firm a few notches when you leave your current firm, presuming you performed strongly and have good rationale for the move. You're right that PE recruiting is competitive, so if you feel better with the risk-profile of accepting the PE secondaries role now vs. recruiting again later, that's also a fair consideration but I'd encourage anyone competent to bet on themselves.
is it Landmark? solid platform but if you're interested in direct PE than go w IB
PE secondaries is the exit opp - exits would mostly be other secondaries shops or doing secondary advisory at a EVR/PJT/LAZ/GS/JEF which most likely will pay better as well
Landmark is much bigger than that.
he edited the post - did no originally include fund size
in this case maybe it's glendower or pomona?
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