Alternative Investing
Fund of Funds, Secondaries, Co-Investments
GoBuyside facilitates investment level hiring at many of the most well-known fund of funds, secondaries and co-investment platforms across the world. Our placement experience suggests that the world of Fund of Funds, Secondaries and Co-Investments can be opaque to candidates looking to start an investment career. This lack of transparency often leads to missed opportunities as these asset classes provide unparalleled long-term career paths and are better fits than traditional private equity, credit or hedge fund positions for certain types of professionals. Let’s start with a high-level definition of what these investment strategies entail.
This strategy involves investing in fund managers. Rather than conducting due diligence on companies, you diligence the investment firms that invest in these companies to decide whether you want to allocate capital to their strategy. A fund of funds investment firm could focus on hedge funds or private equity or hypothetically any space in which they wish to execute their strategy.
Like any investment strategy, the goal is to create value through your investment process so capital is retained and ideally grown year over year. A successful fund of funds investment strategy will net of fees lead to higher returns for investors. There is also a diversification benefit – think of a small endowment that wants access to private equity returns without taking the idiosyncratic risk of investing directly in one or two private equity firms. A fund of funds can provide that endowment with diversified access to the private equity market alongside what they would market as higher returns from their due diligence process. Lastly, do not forget investing is a business! A scaled fund of funds investment platform has institutional credibility and pricing power which can create value in the form of access to higher quality managers and better fee economics with those fund managers.
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Whether you’re a firm looking for recruitment support or a candidate looking to land your next buyside role, we can help.