Last time around, we went through Part 1 of the confusion around PE funds of funds: what they actually do, what the work consists of, and how the recruiting process and case studies in interviews work.
Our interview picks up today with Part 2, where we delve into the industry landscape, what you do on the job in more detail, and the usual “no B.S. discussions” you’ve come to love about the real trade-offs of the job.
Let’s get started by breaking down the funds of funds industry, see where different firms fit in, and how to tell which places to avoid:
Industry Landscape & Overview
Q: So what’s the funds of funds industry like overall? Are there a lot of independent shops, or are they mostly part of larger banks or investment firms? What about industry or geographical focus?
Let’s start with the good news: bonuses are almost certainly going up by 10-20% this year.
Look at the numbers, our analysis below, and other sources, and you can’t help but draw that conclusion.
The bad news?
The irresponsible policies of central banks around the world, led by the lunatic-in-charge at the Fed here in the US, mean that those higher bonuses could be worth… nothing in the near future.
So I hope you’re buying land, cows, dragons, Bitcoins, or something else that will increase in value even if the USD and other currencies come crashing down.
But before we get into the doom and gloom, let’s start with a visual:
The World At Large This Year
If there’s one long-running unfulfilled request on this site, it’s coverage of Project Finance.
I have gotten about 100+ requests to feature it, and I’ve even had numerous interviewees sign up and volunteer to speak about it… and then drop out at the last minute.
The bad news is that this is still not that elusive article on Project Finance.
But the good news is that this is very close, and it covers an area that is even more interesting in some ways: infrastructure investing.
If Project Finance is the “venture capital” of the toll road/bridge/airport world, infrastructure investing is the “private equity” of that same world.
And all you have to do to get in?
Land a bulge bracket offer in Australia, get forced out, wind up in Hong Kong without knowing the language, and improvise your way to success from there.
Here’s the full story: