CDD vs Private Equity Placement Agent

Based on the most helpful WSO content, here's a breakdown of the two paths you're considering for a future in MM or LMM PE:

1. Commercial Due Diligence (CDD) Role:

   • Pros: In a CDD role, such as those at firms like LEK, you gain deep insights into market dynamics, including market size, growth models, and competitive landscapes. This knowledge is crucial for PE firms when evaluating potential investments.
   • Cons: CDD roles typically lack comprehensive deal execution exposure. You primarily focus on the market and competitive analysis part of the deals, which might limit your understanding of other critical aspects like deal structuring and post-acquisition integration.

2. Private Equity Placement Agent Role:

   • Pros: Working as a placement agent (e.g., at Park Hill) provides you with a broad view of the private equity landscape. You interact with both General Partners (GPs) and Limited Partners (LPs), which helps in understanding the fundraising aspect of PE. This role also involves some degree of financial modeling and deal exposure.
   • Cons: The role is more aligned with sales and relationship management rather than the core deal processes. You might lack the depth of deal-making experience that roles in investment banking or direct PE investing offer.

Recommendation: Given your end goal of working in a MM or LMM PE firm, the choice largely depends on where you want to strengthen your profile. If you aim to enhance your understanding of market dynamics and competitive analysis, which are valuable in the due diligence phase of PE deals, a CDD role could be beneficial. However, if you prefer to build a network within the PE industry and understand the financial aspects from a fundraising perspective, the placement agent role might be more suitable.

Neither path is a direct route to PE, as you noted, but both provide valuable skills that can be leveraged to transition into PE roles, especially in MM and LMM firms where versatility and a broad skill set can be particularly advantageous.

Sources: How to approach LMM PE recruiting?, Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, Private Funds Group (CS/UBS etc), My Path - MBA Banking Associate to PE, Why private equity practice vs. general practice?