Tier 1 PCA/Secondary Advisory

There recently was an interesting post on the PCA market and I went into detail about the various shops out there. I got some heat for my view that Goldman is establishing a great shop since they're presently untested and my view that Lazard is more of a Tier 2 since they're going to need to do a total rebuild. It would be great to discuss the following groups in more detail. Culture, hours, pay, deal dynamics, assets, anything:

  1. Evercore: Highest volume and highest paying. Turnover is high, super high stress environment.

  2. PJT: More of a single-asset continuation fund shop - can they really compete with EVR without a massive increase in headcount and experience?

  3. Lazard: More of a GP-led shop but got gutted talent wise and needing to do a total rebuild.

  4. Jefferies: Ex Greenhill-Cogent team. I've seen quite a few of their deals in the market both on the GP-led and LP side and the quality was high.

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (73)

  • Associate 1 in IB - Gen
Sep 15, 2021 - 9:09pm

Typical sloppy secondaries investor reporting - looking at their LinkedIn you can see they each got a bump (associate to VP and VP to director). Agree that it was probably title/$ driven to help jump start the secondaries group over there.

To the rebuild point...same article points out LAZ hired a couple MDs with one presumably US based.

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
  • Associate 1 in IB - Gen
Sep 15, 2021 - 10:26pm

Broad question from someone not in the business - why are you in/looking at secondaries groups? What aspects of PCA vs coverage vs other product groups do you prefer? Have gotten a few HH outreaches and I do not know much about the landscape.

  • Principal in PE - Other
Sep 16, 2021 - 9:00am

I'm on the buyside at a secondaries shop but I've hired a few guys from various PCA teams. I'd say a benefit must be that you're interacting daily with groups you could eventually make an exit to. Apart from that, I'd love to hear from people who work on the sell-side.

  • Associate 1 in S&T - Other
Sep 16, 2021 - 9:30am

Worked in a PCA group for a bit. Does it open up more exit opps? Probably. Is the work mind-numbingly boring? Yes. All of the tedious parts of banking-editing a PowerPoint for v72-with none of the skills-learning to model. 

  • Associate 1 in IB - Gen
Sep 16, 2021 - 11:00am

My experience has been even if it's a single-asset deal that requires modeling, you will work with the banking coverage group, and they will handle that aspect. So I guess you can see it and understand how it works, but it won't be you who holds the pen

Most Helpful
  • Works at Buttonwood Group Trading
Sep 16, 2021 - 3:25pm

Unlike IBD, a lot of Principal/VP level folks at PCA groups are expected to get their hands dirty. So that's everything from going into PPTs and making edits, opening up excels and models to make direct edits, sketch up process docs, slides, etc, and also talk to buyers and run the process.

Until you make Director level and up, I would expect everyone at the Principal/VP level and below to do a little bit of all junior level work.

Unless you're at a T1, like EVR, LAZ or PJT PH, you won't get paid like the Sponsor Coverage teams.

Exits mostly to secondaries buyside, other secondaries advisory firms, FoF, investor relations.

  • Works at Buttonwood Group Trading
Sep 16, 2021 - 3:27pm

To add, unlike Sponsors Coverage Groups at banks, you are unlikely to ever, if at all, touch or build an LBO model. Most of your 'modeling' in PCA will be fund level modeling, but I've learned that those models are never 'accurate'. You're really better off the GP's in-house IR and accounting teams give you specific numbers.

  • Works at Buttonwood Group Trading
Sep 16, 2021 - 3:20pm

Primary fundraisings or secondaries? Houlihan PFG in generally has been an inorganic effort for HL - they acquired a placement agent and have the old BearTooth Advisors team running it. I have been in the primary PE fundraising biz my entire career and had never heard of BearTooth Advisors. 

Houlihan's secondaries team is new. They have a Bagelcel running it. I hear he gets bear teeth shoved up his arse lolzx

  • Associate 1 in IB - Gen
Sep 28, 2021 - 3:52pm

It's the lack of announcements/press releases for these GP deals. Many aren't reported or picked up by news sources unless they're massive.

Sep 24, 2021 - 10:35am

Traditional exit market will cool down before valuations do. More continuation vehicles for GPs looking to crystallise returns but without viable exit. Paid for by secondary dry powder. LPs forced to sell due to re ups in primaries. Medium term hard to maintain valuations. Forced selling. Advisors getting a clip every time. Fees for everyone. 

  • Associate 1 in IB - Gen
Oct 15, 2021 - 1:05pm

It literally just started so TBD what the experience and group will look like. Not sure what the deal flow will look like initially but assume the GS name and connections should help get it off the ground. Probably a cool place to help build a business but I don't think that's where I would cut my teeth when ramping up the learning curve.

  • Analyst 1 in IB - Gen
Oct 25, 2021 - 3:52pm

Ipsam possimus dignissimos et. Eligendi rerum tempore nemo occaecati. Provident velit officiis consequatur natus et sint.

Saepe tempora rem quo delectus. Omnis consequuntur placeat assumenda et possimus enim voluptatum. Et ullam sit qui voluptatem veritatis et eum et. Soluta accusamus vel est corrupti ut.

Ad delectus minima quia omnis non beatae. Officia possimus aut asperiores nisi dolores. Placeat sed odit adipisci at. Facere quo officia sit dignissimos omnis quis sed. Quod ullam qui voluptatum sapiente suscipit. Adipisci reprehenderit illo ut sit quae dolore. Repudiandae hic error qui aut rerum.

Oct 25, 2021 - 4:55pm

Qui voluptatem qui facere omnis sit dicta ad. Laboriosam veniam iste libero et saepe. Debitis sunt ducimus quia ab ab voluptatum sit. Dicta reiciendis quia in impedit ab voluptatem adipisci illo.

Rerum et veritatis rem praesentium. Ea enim aliquid aliquam iste. Eos ab non ullam. Iste saepe enim qui. Maiores et ducimus rem impedit. Quasi occaecati vel ipsum dolorem officia fugit est.

  • Analyst 1 in IB - Gen
Oct 25, 2021 - 5:19pm

Ea odit rem sit totam debitis. Ipsa eaque vel quia iusto distinctio et neque tempora. Dolor dolore mollitia neque voluptas et ad. Voluptas voluptatem rerum excepturi blanditiis quas autem.

Recusandae asperiores blanditiis ratione aut magni. Est autem dicta nam illum.

Aperiam cum harum ea maxime quia. Excepturi maxime facilis ea voluptas dicta officiis. Quia veniam tempora laborum est.

Start Discussion

Total Avg Compensation

November 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (40) $360
  • Associates (236) $235
  • 2nd Year Analyst (144) $156
  • 3rd+ Year Analyst (34) $154
  • Intern/Summer Associate (107) $146
  • 1st Year Analyst (514) $136
  • Intern/Summer Analyst (394) $84