GS Asset Management - PE Group interview

I’m interviewing for the following position next week at Goldman Sachs’ Private Equity Group and was wondering if anyone who works in a similar position or has had experience related to this position could comment on: -growth prospects -salary expectation -learning opps. -exit opps. My background: graduated from a NESCAC school, 2 years in Institutional Asset Management at a competing firm. Goldman Sachs Asset Management - Private Equity Group – Portfolio Analytics Analyst Summary: The Private Equity Group (“PEG”) is looking to add an analyst to its Portfolio Analytics Team. The Portfolio Analytics Team works closely with all areas of PEG, primarily responsible for the tracking and analysis of the group’s partnership, direct and secondary investments. Principal Responsibilities: •Review and interpret the financial statements and quarterly portfolio updates from underlying Private Equity fund managers. •Maintain a thorough investment database - including, but not limited to, tracking costs and NAV’s of underlying partnerships and companies, shares and market values of public securities, and various performance figures. •Track all cashflows to and from Private Equity investments •Monitor Private Equity exposure of the Funds - report any meaningful contributions, distributions, or changes in valuations pertaining to underlying investments. •Assist in allocation of investments and investment closing process •Assist in direct investment valuation process and review of financials statements issued by PEG •Contribute summaries of underlying investment information to various investor documents and internal management updates. •Establish and maintain relationships with fund Private equity managers and various third parties. •Respond to ad hoc information requests received from internal portfolio management team, as well as clients. •Assist in operational due diligence of existing Private Equity fund managers Experience/Skills: • 6 months + of applicable experience • Ability to work in a fast-paced environment and think clearly under pressure • Strong organizational skills • Ability to multi-task • Detail-oriented • Team player • Excellent communication skills • Advanced facility with Excel and adaptability to other software products

This is a fine opportunity. I would not expect much in the way of comp above an beyond quasi entry level though. I’d expect around 60-65 base if it’s in NY, and a wild guess would be a limited bonus around 15% in your first year. Growth opportunities should be just fine, but don’t expect this to lead to a deal professional role. It’s more something someone does before doing getting into traditional PM at the entry level. Never hurts to have GS on your resume obviously. Btw which Nescac school did you go to? I also went to one. You can message me off line if you want Danteshek at gmail.

Thanks Danteshek. Appreciate your comments. They were right on (HR person said the same stuff). I went to Bowdoin. How about yourself? I interviewed for this position yesterday and got the offer this morning. Here’s the problem though. The HR person asked me what my current comp was at the interview yesterday and I told them what I make all in. When they called me this morning, they offered me $10K less in base salary than I make now. I would’ve thought If they really wanted me, they would’ve offered me the same salary that I make now if not more. I don’t get why they would lowball me. Obviously I’m going to negotiate it but this has made me rethink the offer now. It sounds like a good position and everyone on the team was nice as well. If you guys have any comments or advice, I would appreciate it.

I went to Wesleyan. Three years out just started working for fund co. in institutional sales after two years client service at other fund co. The reason they lowballed you is cause they are GS. They know how valuable it is to you to work there. Same thing happened to me at my first job (entry level at brand name). If I were you I would NOT negotiate. If you must negotiate do not play hard ball. It is in your long term best interest to take this job. You will meet tons of people who will be extremely helpful to you in the future. Do not let a measly 5 or 10k derail your career. It is possible you are presently paid above market. If that is the case it is not surprising they offered you a lower base. Companies can’t go around paying new hires more than employees already working there in the same position and with the same or more relevant experience than you.

positivecarry Wrote: ------------------------------------------------------- > Thanks Danteshek. Appreciate your comments. They > were right on (HR person said the same stuff). I > went to Bowdoin. How about yourself? > > I interviewed for this position yesterday and got > the offer this morning. Here’s the problem though. > The HR person asked me what my current comp was at > the interview yesterday and I told them what I > make all in. When they called me this morning, > they offered me $10K less in base salary than I > make now. I would’ve thought If they really wanted > me, they would’ve offered me the same salary that > I make now if not more. I don’t get why they would > lowball me. Obviously I’m going to negotiate it > but this has made me rethink the offer now. It > sounds like a good position and everyone on the > team was nice as well. If you guys have any > comments or advice, I would appreciate it. Did they hire you into an “analyst” program? If so, comp is pretty structured, although perhaps you can negotiate a signing bonus.

It sounds to me like he is an experienced hire. Albeit on the less experienced side. Considering your lack of experience, I would advise against trying to negotiate a signing bonus.

Danteshek Wrote: ------------------------------------------------------- > It sounds to me like he is an experienced hire. > Albeit on the less experienced side. Considering > your lack of experience, I would advise against > trying to negotiate a signing bonus. You can still be an experienced hire placed into an analyst program, particularly if its not directly transferable work experience. I know plenty of people that worked for a year and then got hired by my current bank as first year analysts. Not positive if they got their $10k signing bonus or not.

This is an experienced hire, not a typiacal analyst program position. I did get a bigger salary increase my second year at my current position than usual. One of our analysts left and my manager decided not to replace him and gave myself and another analyst a bigger raise (along with more work) so maybe I’m overpaid at my current job by 5K or so. I don’t really think there’s room for negotiation on the signinig bonus because it’s a pretty standard number across the street. I’ll try to negotiate the salary and see if they would increase the offer. I’m going to take the position so I figure there’s no harm in trying my luck. Thanks for your responses.

positivecarry Wrote: ------------------------------------------------------- > Thanks Danteshek. Appreciate your comments. They > were right on (HR person said the same stuff). I > went to Bowdoin. How about yourself? > > I interviewed for this position yesterday and got > the offer this morning. Here’s the problem though. > The HR person asked me what my current comp was at > the interview yesterday and I told them what I > make all in. When they called me this morning, > they offered me $10K less in base salary than I > make now. I would’ve thought If they really wanted > me, they would’ve offered me the same salary that > I make now if not more. I don’t get why they would > lowball me. Obviously I’m going to negotiate it > but this has made me rethink the offer now. It > sounds like a good position and everyone on the > team was nice as well. If you guys have any > comments or advice, I would appreciate it. if it’s a good opportunity, don’t worry about the base so much…the bonus will probably be better than what you used to get. i don’t know how realistic this will be to get on track to become a PM (i recognize it’s possible but time frame seems uncertain to me), and other than that i agree with what Danteshek wrote below "This is a fine opportunity. I would not expect much in the way of comp above an beyond quasi entry level though. I’d expect around 60-65 base if it’s in NY, and a wild guess would be a limited bonus around 15% in your first year. Growth opportunities should be just fine, but don’t expect this to lead to a deal professional role. It’s more something someone does before doing getting into traditional PM at the entry level. Never hurts to have GS on your resume obviously. "

It’s not a sure thing, but I can tell you that nearly everone I’ve ever met who got into PM internally was in some sort of analytics support function (pricing, risk management etc) prior to getting that opportunity. He will need to stand out and pass some levels to boost his credibility. He will also have to be well liked. A-holes don’t get far on this side of the fence.

If you’re talking about portfolio management I’d say that’s a broad claim to make, if I’m interpreting it correctly. I work at a large buy side shop and almost all our PMs on both the equity and fixed income sides of the house come up through research. Across the industry I’d imagine way, way more PMs come from a research background than analytics. We’re very much a bottoms-up shop though so that is obviously a factor. But maybe you meant that of the support roles in an investment organization, analytics is the most likely to help you transition to portfolio management. I guess I could see that being true, but without a research background I don’t think it would be likely at my organization, although maybe possible. For better or for worse the path is fairly structured at my shop, analysts come either straight out of top MBA programs or from coverage roles on the street or at other buy side shops. Then, those that prove they have the right skill set for portfolio management roles make the transition to PM, usually after at least five years in research.

Big Nodge Wrote: ------------------------------------------------------- > If you’re talking about portfolio management I’d > say that’s a broad claim to make, if I’m > interpreting it correctly. I work at a large buy > side shop and almost all our PMs on both the > equity and fixed income sides of the house come up > through research. Across the industry I’d imagine > way, way more PMs come from a research background > than analytics. We’re very much a bottoms-up shop > though so that is obviously a factor. > > But maybe you meant that of the support roles in > an investment organization, analytics is the most > likely to help you transition to portfolio > management. I guess I could see that being true, > but without a research background I don’t think it > would be likely at my organization, although maybe > possible. For better or for worse the path is > fairly structured at my shop, analysts come either > straight out of top MBA programs or from coverage > roles on the street or at other buy side shops. > Then, those that prove they have the right skill > set for portfolio management roles make the > transition to PM, usually after at least five > years in research. At most investment management organizations PM and Research is basically the same thing. I really mean the investment management department which emcompasses both research and trading. So basically every other department, except sales maybe, is a support function if you choose to look at it that way. I am only talking about people who are already employed with the firm and want to move to an portfolio management position. From my observations, I have seen a lot more people promoted internally than come in from outside or from degree programs.

Ok yeah, in that case I would agree. Analytics generally seems to have lots of interaction with the the invetment management team, more with the PMs and traders here than the analysts. And they know how the organization works, which is important. Also agree that PMs are usually internal promotions versus external hires. Makes sense as the culture of the shop is pretty important.