What should I do: FoF at major PE investor or FoF-Co-Invest-Secondary at smaller PE pension fund

vv077's picture
Rank: Chimp | 12


There are currently two (excellent) offers on the table. One at a large PE investor (team) where I will work in FoF (think: Harbourvest), and another one at a 3-5x smaller pension funds PE investor (still large: >5 bln AUM) where I will work on FoF-Co-Sec investments.
Apart from some internships, I have no previous experience in IB and (in)direct PE.

I'm in doubt between these two
i) as I might like to make the step towards direct investments in the future
ii) as I am not sure whether I find FoF too qualitative or whether I find Co-invest too quantitative (I don't want to model all day, but I would like to model)
iii) as I do not want to limit myself too much for possible future roles: where could I end up when I want to exit FoF? And is it potentially better to exit FoF at large investor, or to exit FoF-Co-Sec role at smaller investor?

Could you maybe provide me some advice? Thanks in advance.

Comments (6)

Sep 5, 2016


Sep 7, 2016


Sep 7, 2016

If you want to one day end up in direct investments at a PE firm, the answer is neither. FoF and co-invest positions will not help you get into direct investing. If you want direct investing experience, you need real transaction experience (i.e. banking).

Sep 10, 2016

I agree, but only to some extent. Sure, you won't likely end up at mega funds, but with your co-investing experience you could well end up at a MM PE firm. I have seen it happen multiple times. However, you should work at a $10b aum PE investor, with a good reputation to increase your chances.

Sep 11, 2016

Yeah... I've been in PE for 8 years. I work at a upper MM PE firm and have a lot of friends that work other MM PE firms. I don't know many places that will hire co-invest guys... Sure it happens, but it doesnt happen often enough for me to know a single example.

Sep 12, 2016