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?
| +46 | How hard to study for PE interviews? | 20 | 4h | |
| +45 | LMM PE vs. MF PE? | 12 | 10h | |
| +42 | How to exit from Continental Europe IB to London PE? | 13 | 1d | |
| +34 | Is PE worth it? | 19 | 3d | |
| +29 | PE Tier List - Any ideas? | 23 | 8h | |
| +24 | For PE folks who don’t make partner, how much $ is left on the table? | 13 | 1d | |
| +23 | Future of O&G PE? | 15 | 17h | |
| +23 | What are the early signs of an exceptional investor? | 4 | 9h | |
| +20 | PE and Balance Sheet Heavy Businesses | 7 | 1d | |
| +18 | Why MM PE? | 6 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
bump, good question.
Bump. Does anybody know?
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.
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?
Merchant banking model...see DLJ setup
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.
What would be a better move? Getting into your BB's PE arm or going to a standalone after 2+ years as an analyst?
"Better" is a relative term -- it really comes down to the individual and the circumstance. There's a lot of factors to consider.
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.
Qui cumque rerum et ipsam architecto. Deserunt iure voluptatum neque quia eligendi qui vel. Magni quia praesentium voluptatibus vel ut adipisci.
Eum cum nihil ea nam est. Maxime aut tempore quisquam ut quia. Quidem sed quas harum necessitatibus repellendus in. Commodi officiis qui provident suscipit.
Adipisci officiis ab vitae nihil. Aut modi quibusdam nostrum occaecati.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...