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

vv077's picture
Rank: Chimp | banana points 12

Hi,

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

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Sep 7, 2016

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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