Transaction Advisory Vs PE FoF to get to direct buy side PE

icemonkey's picture
Rank: Chimp | 13

Currently in audit at Big4 (PE Fund of Fund. Fund of Fund seems to do less Co-investment deals than other shops, but does quite a bit of secondary offerings.

Goal is to get to direct buy side PE shop, but of course that will take a couple steps to get there. Clearly both of these options are better than staying in audit. The Fund of Fund seems like it would be a great opportunity to network (although at the analyst level not sure how much this will help) and get some experience in modeling. FDD would be a good place to be while networking into IB or some other role.

Thoughts?

Comments (7)

Jun 25, 2014

TAS. Co-investment is overrated from my perspective. Very little additional diligence is done that the GP hasn't already put in. If you want direct deal-related experience, go the TAS route. Not saying the jump to traditional PE will be easy, but your skill set will be more closely aligned.

Jun 25, 2014

Would not recommend FoF if your goal is PE.

Jun 25, 2014

I've spoken with a PE FOF and they made it very clear that it wasn't a good role to take if investing was what you wanted to do. The reason they were being so clear was because the vacancy was made by someone leaving prematurely because they misunderstood the role. Basically it was all performance analysis on the funds' investments. Perhaps this was a unique experience though.

Jun 25, 2014

What is the FoF role ?

Jun 25, 2014

Investment Analyst. Job Description:

* Analyzing financial statements of private equity partnerships, including a review of partnership portfolio company valuations and cash flows
* Preparing client reports and presentations
* Assisting with special reporting, research, and due diligence projects on an ad hoc basis
* Performing an initial quantitative and qualitative review of potential private equity fund investments
* Conducting in-depth quantitative analysis of potential private equity fund investments

My background is audit of financial services, which is one of the reasons I was able to be considered for the position.

Jun 26, 2014

So speaking from someone who works in FoF and Co-investments....this role is highly FoF related and even more back office than traditional FoF. I would go TAS

Jun 25, 2014
Comment