Buy-side move on the cards? Here's what to consider when moving to a fund

Due Diligence

James Wallis

Is the strategy right for me?

Large PE fund, lower-mid market, VC, there are numerous options.  Sounds obvious but we often speak to people who have decided they want to work on the buy-side but have given it little further thought. If credit is an option, take a look at our article Performing, direct lending or stressed/distressed?”. 

Where are they on fund raising?

This should be central to anyone looking to join any fund – how much cash do they have, how good are they at raising it and how locked up is the money (i.e. can investors withdraw it quickly)? 

What have their returns been like?

We’re always told past performance is not guarantee of future success but it's probably the best guide you’ve got and it’s what investors look at.  Funds may be guarded about providing it but check out resources like CreditFlux and don't be afraid to ask.  It will link closely to fund raising and what you’ll ultimately be paid.

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