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Could be a good opportunity but make sure they have their fund raised! What you don't want is "we have 20% of our $x million/billion fund committed but great momentum with LPs - join us now and you can be part of something from inception."
I have some experience with a Start-Up fund. Its a great opportunity if you can get in early on in a small group and be close with the founders. Tons of upside if it takes off. But, How much of a start up is it? Do they have a fund raised or are they still going after LPs? Who are the founders and what is their track record? You may have to take a hit to comp in the beginning as part of the process while raising capital. If you are really in startup/fundraising mode you will also be dealing with a lot of bullshit like presentations, LP tracking, marketing as well as looking to source potential deals. If you can give us a bit more detail on how much of a "startup" it is, maybe we can help you out a bit more.
Dont have many of the details myself, but I believe they are about to bring their fund across the finish line.
I work at a PE fund that was essentially start up when I got here two+ years ago and was an intern (the firm was founded in early 07). It's starting to become great experience, but be prepared for a long road with fundraising at the beginning. We closed a few one-off deals in that time, which kept some decent money coming in while we were raising the fund, but it took a very long time to make serious progress on raising the fund- and in that time I had to do a shitload of tough fund-raising related work like drafting 40 page investment memo's to send to inst. investors interested in one-offs. A lot of what I was doing then was basically sell-side work. It was in some ways pretty frustrating because we had to pass on some good deals that "weren't marketable".
Now that we've moved forward as a firm though, I'm glad I decided to stay here. I went from intern to analyst in 6 weeks and then from analyst to associate in about 18 months which would never have worked out at a bigger / more established firm. I still get paid slightly below market, but they've been moving up pay as quickly as they can as cash-flow increases and I have faith in the guys above me and the partners that they will reward my loyalty over the longer term if I stay here, etc...
key takeaways:
be realistic about the fundraising process- if it's a first time fund you need to understand these guys track records, reputations etc, and be very confident they can close a fund within a year or two
you need to trust the partners that they'll reward you with pay in the future as you'll likely get below market at the start
you need to realize there is more than just a short-term financial risk associated with working at a place like this. if the fund fails (and MANY of them do or don't get raised, etc), the experience may not do too much for you on your resume.
if you are confident - it's an absolutely great opportunity.
thx man. great points, much appreciated.
Interested in hearing more thoughts on this, especially as it relates to a start-up with a fund that's already been raised.
With a fund that's already raised you'll be lucky if you catch a whiff of carry, and isn't that why you would join?
From my understanding, if our firm is any indication, you wouldn't see carry unless you had been with the firm from formation.
Chance to break into a Start-up PE fund in NYC (Originally Posted: 02/07/2013)
Hey guys,
I have a chance to break into a start up Real Estate PE Fund in NYC. They do distressed investing.
Please find below the duties and skills/qualifications:
Duties: • Organizing asset formation documents for each asset • Analyzing property level and portfolio wide financial statements • Constructing financial models involving the acquisition and disposition of property • Consolidation of property level expenses for the portfolio. • Creating accounting reports for the portfolio • Assistance with all fund level administrative/organizational functions • Working closely with local property managers in different cities in Florida managing each property
Skills/qualifications: • Proficiency in Microsoft Excel is A MUST • Reporting Skills, Writing Skills, Microsoft Office Skills, Managing Processes • Organization & Administrative Skills • Bachelor’s degree (Accounting Major Preferred)
• 1-3 years of work experience in an accounting or administrative role. • Real Estate and/or accounting experience preferred.
What questions should I expect in the interview (meeting with 3 people for 40 minutes each), techs, fits, any model tests you think, anything can help? Please give some insight, if you can -- appreciate it! Thanks!
Well based on the description it seems like you will doing a lot of administrative work as well. Most of the description seems more like organizing information, but then you also have to model for acquisitions. I guess since its a startup you will have to do alot of things. I am sure it will be more fit than technical questions. They probably want someone who is young, ambitious, and can jungle multiple things.
PE Startup (Originally Posted: 03/08/2013)
So I see this opportunity at a start up PE fund that operates in a pretty specific (somewhat niche) market. There is only one other firm in the space, as far as I can tell. Great opportunity and I already have soft commitments for as much cash as I can place.
Anyone have any experience with startup funds?
Not trying to be a douche and crush your dreams, but I hear far too much of this "niche" bullshit from PE funds.
The fact of the matter is, there are far too many groups and far too much money. When demand for deals is that high, you are going to have a tough time getting going right now with the amount of supply in the market IMO b/c others will overpay for the best companies.
Just my thoughts, but good luck and let us know how it works out.
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