Folks,
Diligencing a PE offer - this is for a lateral associate position. Less concerned on whether comp is market or not - given how this topic's been beaten down to death on these forums, that's lesser of my concern as I'm now fairly knowledgeable on the range I can expect. My concerns are more around their return profile across their prior/current funds -- is it reasonable to ask someone at the fund for a sheet of their returns profile/performance - they say its quite strong and have thrown numbers out but I want to make sure they're being completely transparent. Of course, I need to do this without sounding like a complete tool given I'll still be at the bottom of the totem pole post a potential transition. Given I'm not coming out of banking and my motivations to move are different, the above would to some extent play a role in my decision making as my current fund does decently well and this would require moving locations.
For anyone suggesting I dig through profiles of their institutional LPs who report returns, I've already done that and didn't have much success since a lot of their money comes from outside the classic large pension fund network. Any ideas on how to do this the right way?
JD
What's the name of the firm? I'll send you the preqin profile with fund returns
Not sure if this helps, but I've asked a HF to provide me with their historical performance/return profile output for their past fund once an offer was communicated to me; they happily sent it to me for not only their existing/preceding fund, but all fund's since inception. I don't think it's an ask that is out-of-line.
I'm sure they won't mind as long as you word it right, especially given you're coming from another PE fund.
thank you both - that's incredibly helpful and I appreciate it. abcdefghij - I'll probably take you up on your offer if this other route doesn't work (just worried about confidentiality that's all).. Will maybe get in touch with their IR folks and word it correctly.
Is your PE firm currently fundraising? I asked my last firm to send me a copy of the PPM because they were allocating me carry and I wanted an understanding of how the fund would function as well as past results. The document is incredibly confidential so they may not send it to you, but worth a shot to ask.
I've asked for returns after interviews and before a formal offer was extended. They weren't able to share them in written form (e-mail) since as I recall I was told SEC regulations may interpret that as a form of advertising, but was given the details over the phone. These obviously checked out once I joined; miss-leading prospective employees on returns would be pretty shady IMO. Just say you're interested in the firms track record over all their funds, and happy to receive the details over the phone if need be. Frankly I'd be surprised if an experienced hire wasn't asking these questions.
I'd second what CompBanker said: ask for a recent PPM. Loaded with info about the firm and details historical returns.
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