Ignore title. I am currently an analyst at a top tech PE firm (SL/TB/VEP) and have been presented with the opportunity to go to a top PE firm to do tech PE as an associate; however, they don't focus solely on tech (KKR/TPG/H&F/WP). Is it worth making the switch to a more recognized brand name? Is the work any different? How much capital is actually allocated to tech at these funds?
I would appreciate any insights and help. Thanks!
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think the specific firms do matter here. Vista to H&F, I say go for it. Silver Lake to WP, more questionable.
TB doesn't have an analyst program so you must be at SLP or Vista. If you're at SLP it doesn't make sense to leave to one of the other shops you mentioned unless you don't believe in tech and want to switch strategies, which you haven't indicated. If you're at Vista, I'd personally take all of those shops over them.
Curious as to why? Vista is still easily 2nd in software LBOs - if interested in tech, why would you make the jump to those other funds listed? On top of that, none of them except WP having strong promotion visibility up to Sr. Assoc/VP.
Very curious because I'm not entirely sure if this is warranted, or just additional slander on Vista, which seems to be frequent on WSO.
How is the most recent vista fundraise going?
Like the above poster said, you're obviously at either SLP or Vista since TB doesn't have analysts. If you're trying to stay in tech you're already in one of the best seats available, so why would you want to switch? Brand name recognition is highly debatable and really just splitting hairs at this level, I would be comfortable betting more people in tech recognize Vista/Silver Lake vs Warburg Pincus/TPG. KKR has the "better" brand in PE in general because they helped to pioneer the LBO in the first place and H&F is great but in terms of tech reputation/culture but I don't think it's materially different than either of the shops you're already at. I don't know how comps scales at SLP but I know Vista at the junior levels pays less than the other firms you've listed as a potential switch so perhaps there's an argument to be made for an increase in short-term comp, but that doesn't seem like the best reason to switch if you have a good fit w/ your current team and aren't being forced out.
As far as capital allocations go, no idea for TPG/WP but H&F teams I believe all/mostly invest out of the same fund and KKR has a separate fund for the TMT growth team while buyout I think invests out of the flagship.
This all seems very accurate - except the Vista compensation aspect, from what contacts have said. It's somewhere in another thread too (a recent one as well), but Vista analysts rack in 200k, and associates about 350k, because of that phantom carry aspect that brings in an extra about 5-10k for analysts and 50k for associates. Plus no state income tax if in Austin, which I'm sure certainly helps.
Don't think short-term comp should be a driving factor at all, especially in PE, where the real pot of gold is the long-term comp, but just wanted to put that out there.
My Vista comp info is 2-3 years old so if they've upped it since then, that's great news. With the point on taxes in Texas, that makes it even less sensible to switch then in my opinion!
Sounds to me like you're at Vista. Without getting into the exercise of splitting hairs, I'd say it's probably only worth it if you're currently in Austin / Chicago and want to be in NYC / SF instead. If that's not the case, even if you're "trading up" in prestige (which, again, is debatable) you're making it a lot tougher on yourself to get promoted to Sr. Asso and beyond. The difference between having 4 years at your shop to build a reputation and relationships with Partners that will support your promotion to a real carry-rich position vs. just 2 years as a new Associate cannot be overstated. If you want a career in investing it's a long road and that VP promotion point is critical - I would make sure you think hard about whether switching sets you up best to be a VP in 3-4 years.
Would the recent troubles of Vista in terms of recent challenges fundraising, senior talent leaving, reputational risk, etc negatively impact the junior experience enough to jump ship to another shop? Plus, what shops, as there's only a few MFs/tech-focused shops truly worth leaving vista for.
And on top of that, this may be very naive to say, but I am incredibly experienced to the industry, but wouldn't that leave more room for promotion up to VP and even beyond, which Vista already does well?
Bump on this. Which shops would actually be an upgrade to Vista for tech PE?
There is no more reputational risk at Vista than any other megafund lol, nobody in PE gives 2 shits about Robert or one of his LPs dodging taxes. Frankly, you're an idiot if you're that wealthy and NOT trying to hide money from the government.
Almost everyone is seeing hiccups compared to what their fundraising plans were at the start of the year so wouldn't consider that a reason either. The fact is they're already massive and will have more than enough fees to go around for many years to come.
Can't speak much to senior talent leaving as I'm not in the flow of reasons that may be, but some senior churn if fairly normal across large funds. Sure it might impact juniors to a degree if it's your regular MD/VP that's leaving, but at the end of the day it more than likely won't make or break the overall experience you will get. And like you said, it clears some room at the top for people looking to promote vs up-and-out.
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