Private Equity Fund of funds vs. Buy-side equity analyst

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Analyst76

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Hi,

I was recently offered a position as an entry level buy-side analyst with a middle size mutual fund. But I have also been head hunted for a role in a Private Equity Fund of Funds business.

A little confused on which path to take. I am interested to eventually be managing money. I know that I will have a good chance doing that as a buy-side analyst ...but have no clue what does PE fund of funds do?

Please advice....thanks!!!
 
Absent further details I will take a stab at your question on a best efforts basis.

A PE Fund of Funds is essentially a consultancy whereby you'll analyzing, evaluating, comparing and formulating opinions on the methods, performance and track records of various PE managers. These firms are retained by institutional and high-net worth clients to either a) recommend managers for hire or termination or b) serve as the "quarterback" of a master fund and allocate pooled capital across many managers.

If you want to be a money manager I would go with the analyst role with the Mutual Fund company. Based on the thin description available I think you'll find that a clearer, more common path to running money.

The plus side of the PE FoF is that you'll be in front of a lot of PE managers if you decide to jump into the alternative space; but as to whether or not that role lends itself to getting in on the actual management of a PE fund, I have no idea.
 
BOMC Wrote:
-------------------------------------------------------

>
> The plus side of the PE FoF is that you'll be in
> front of a lot of PE managers if you decide to
> jump into the alternative space; but as to whether
> or not that role lends itself to getting in on the
> actual management of a PE fund, I have no idea.

Jumping from a FoF to an LBO/growth equity fund is actually pretty challenging -- more challenging than it might seem -- mostly because you don't have direct experience with transactions at a FoF.
 
Being a PE analyst means to deep dig a business, solve much real industry problems, investigate more detail elements of strategic plans (e.g. opening of new productions, shops, developing of new products, communication in order to borrow money from commercial banking) of asset under the management of PE fund especially while possesing controlling interest.
In regard to Mutual fund i think the analisys is more simplified or much more perfunctory and limited to formal statements and industry research.
So arrangements differ too. PE is a management carry, MF - portfolio performance.
So if You are more "real management" oriented - it is PE...
Hope i was clear.
 
Konstantin Wrote:
-------------------------------------------------------
> Being a PE analyst means to deep dig a business,
> solve much real industry problems, investigate
> more detail elements of strategic plans (e.g.
> opening of new productions, shops, developing of
> new products, communication in order to borrow
> money from commercial banking) of asset under the
> management of PE fund especially while possesing
> controlling interest.
> In regard to Mutual fund i think the analisys is
> more simplified or much more perfunctory and
> limited to formal statements and industry
> research.
> So arrangements differ too. PE is a management
> carry, MF - portfolio performance.
> So if You are more "real management" oriented - it
> is PE...
> Hope i was clear.


He is not interviewing for a PE Analyst
 
Thank you so much for all your advice!! I have decided to go for Mutual fund!! Thanks
 
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