What's the difference between a BB Bank's PE division, and a major PE firm?

aceman's picture
Rank: Orangutan | 373

Hi, I'm wondering what the difference is between a major PE firm such as KKR, Blackstone, TPG, Carlyle, etc, and the Private Equity division of a bulge bracket bank (such as Goldman Sachs Capital Partners, Morgan Stanley Private Equity)?

Do they do the same things? What's the difference in terms of prestige, size (number of hires per year), competitiveness, compensation, hours, etc?

Comments (11)

Aug 20, 2007

bump, good question.

Apr 29, 2009

Bump. Does anybody know?

Apr 29, 2009

Typically (at least at the fund I worked for) the BB PC wings act as "fund of funds" a lot of the time. For instance we had a 20 MM commitment from GSCP, so those kind of groups act as kind of the "source of the river," essentially they are LP's in funds most of the time. I'm sure they have gp's at those groups that invest, but principally put into other private asset classes. GE's private equity ring is the biggest I think, because they committed 87 MM to the fund, I know thats all they do.

Apr 30, 2009

Not sure if I am right on this point.. But I think there could be interest conflict issue between BB's M&A team and the PE team?

Apr 30, 2009

Merchant banking model...see DLJ setup

May 6, 2009

Well BBs are often so large that they have multiple "private equity" groups. Like westfald mentioned, some of the PE groups are funds of funds while others are direct invest funds. GS, for example, has a fund of funds as well as multiple direct investing arms -- PIA, Multi-Strat SSG, GSPS, GS PSI, etc.

May 6, 2009

What would be a better move? Getting into your BB's PE arm or going to a standalone after 2+ years as an analyst?

May 6, 2009

"Better" is a relative term -- it really comes down to the individual and the circumstance. There's a lot of factors to consider.

May 7, 2009
aworldapart:

"Better" is a relative term -- it really comes down to the individual and the circumstance. There's a lot of factors to consider.

Well broadly speaking in terms of comp, quality of life, ability to move up within the org., typical responsibility level. I'm referring to mega PE funds vs BB PE arm.

May 8, 2009

The typical issue with GS PIA was that they hired after the standalone PE firms (e.g. TPG, KKR).

GS PIA if spun-out would be listed with TPG, KKR, Apollo, Blackstone.

May 8, 2009
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