How does getting paid in PE at senior levels work in practice? Given the dynamic between a fund life cycles & timing of exits, most of the serious money has to be at the end of the fund right?

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It depends a lot by fund. My personal experience (in PE now) is that IC decks are very time intensive to put together (similar to a DD deck), but outside of that most meetings are more informal around various trackers/legal docs vs slide output of that makes sense.

It’s not client services, so there isn’t the same pressure to create slides for the sake of creating slides

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At our firm, ICs are slide format. And discussion based, with final vote at the end (similar to board meetings for PortCos)

The deck is similar to a DD deck (as mentioned) and starts off with an executive summary, followed by some context of the business (especially if first IC), and then breakdown of the financials (BU by BU). All this maps to market, trends, customers etc etc etc

For slides, we do not care about how it looks (can’t be like a 5th grader) but no need to high end VGI it. Focus on the insights, numbers.

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Sure, but assuming a reasonable deployment pace you’re investing one fund while you harvest the last so the treadmill keeps moving

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Cash flow profile of your first few years in PE isn’t the best, but to BCG 1’s point, eventually you start cash flowing out of the early investments and it really starts to take off in aggregate

Makes sense. Thank you. Second unrelated question, how much of IC is slides vs memo? What about day to day? I’m sure it varies by fund, but am I mistaken to think that there’s a LOT less time on slides as an associate vs MBB? (I know there’s inevitably less b/c who cares about slides as much as we do lol, but like a lot less?)

A lot less slides, a lot more modeling

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