Looking for insight from those who made the jump to PE, particularly from an "interesting" sell-side group, like TMT, consumer, healthcare, etc. I know everyone finds different sectors interesting, but the fact is that the lion's share of PE deals done by generalist shops will be for industrial widget manufacturers or some other random niche industrials/services company. It's pretty clear why those sectors make for such attractive buyout targets, but I'm curious whether you've found the investment and value creation process with those companies to be as interesting? Is working through operational improvements stimulating and rewarding for you, even if it's for a niche industrial parts manufacturer or janitorial services company, and not a comparatively sexier SaaS or media business? Would appreciate any insight at all levels (ASO, VP, etc).
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ASO, personally found it very boring which is ultimately why I left. I found the analytical part of modeling to be not very intellectually stimulating and rather rinse-and-repeat type work. I see why it is the bees knees for some people though. I preferred creative problems from working at a startup afterwards (e.g., new problem every day) and really felt fulfillment from leadership (both across teams and with direct reports in a different sort than you get in PE). I also wanted to get more quickly into business development functions in addition to S&O and wanted a broader swath of things to fill my day with. Realize you get that as you become MD but didn't want to wait that long.
That said I just wrote a post about why going through blue chip PE and getting ground to dust was one of the best things I ever did for my career, which I stand by thoroughly, and thank all of the people at my old firm for such a great experience, even if I would be the first one to the site with a spatula if they ever got hit by a truck.
Appreciate the insight. Was it just the modeling and ASO-level grunt work that you found boring, or was it also just working with unsexy and boring businesses? Also would you mind linking that post you wrote? You're anonymous here so can't see from your profile.
https://www.wallstreetoasis.com/forum/job-search/do-you-regret-ibpe#com…
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I'm not sure what you're looking for. Everyone's experience and personal interests will vary.
Personally, I find the investment process stimulating. Portfolio management is boring. But that's me.
I get that, I'm more curious about whether you find the investment process interesting even in sectors that most would consider boring. I get that there are people who are really passionate about niche industrial or janitorial services companies, but I'm not sure the majority that applies to the majority. Do you find the sectors particularly interesting, or is the deal process uniform enough across industries for it to not matter whether you're investing in an industrials co or an enterprise SaaS co?
I'm naturally a various curious person (pause), so I enjoy learning about all types of business models, even if they're very traditional/boring/unsexy. I think this is because I don't care too much for what they're doing, but rather how they're doing it, especially as that relates to growth and operational excellence.
For example, janitorial services is a boring business on the surface, no doubt about that. However, what becomes more interesting is their processes. If it's an organic growth play, how do they define their ICP and what is their go-to-market strategy (along with related metrics)? If it's an inorganic growth play, how do they develop a funnel, conduct diligence, and integrate? Then, how do you scale the workforce when entering new geographies - sub out the work initially, then slowly build a team over time? Etc.
These are all operational and strategic considerations that apply to most businesses, and it becomes fascinating to understand what works for some versus others, or what a particular business may benefit from implementing (by applying what you've learned from other businesses and industries).
The best analogy I can think of is a car enthusiast. Yes, certain makes and models are cooler than others, but enthusiasts are typically more fascinated by the engine, systems, and specs.
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