how much does deal value matter?
(Senior Orangutan, 401
Points)
on 4/21/11 at 8:10pm
an older analyst told me that for PE recruiting you should in the best scenario have at least a $1billion+ transaction under your belt (preferably announced). i've also heard that deal experience doesn't matter as much and that bank/performance/recs are key.
anyone have any experience with this? since the top funds recruit so early i can't imagine an analyst would have closed a multibillion transaction in his first six months...
if you're at a reputable BB
if you're at a reputable BB or boutique there's no way you wouldn't be on a $1b+ deal in your first 3-6 months...
and I don't think closing a deal matters as much as the WORK you do on a deal
Example: I worked on a deal this summer that absolutely fell apart and went nowhere, but for a while the deal was hot (multiple interested sponsors and financing options). We worked it to the point where it was dependent on whether or not someone would be able to step in to fund a key portion of the deal and how much leverage our IBD risk officers would be comfortable with. Throughout the deal, I had access to the sponsor's models and data room. At one point I actually suggested adding some mezz and my VP told me to just run with it for a while (eventually axed). Even though this deal crashed and burned, it has been a GREAT talking about in all of my interviews so far (why did the deal fall through? why did you suggest adding mezz to the deal? what/why? etc).
So in short--doesn't really matter if you close or not. Closing a deal is a function of a lot of things you can't control as an analyst. However, it's much better to be the only analyst on a $300mm IPO than the 50th guy on the ATT/Tmobile deal i.e. the guy who only updates term sheets. PE firms generally want to see you close deals because it means you have the full range of deal experience (rather than just pitching). Just my personal opinion.
Solidarity wrote: if you're
if you're at a reputable BB or boutique there's no way you wouldn't be on a $1b+ deal in your first 3-6 months...
and I don't think closing a deal matters as much as the WORK you do on a deal
Closing deals deals is nice but not necessary. the work done on a completed deal vs uncompleted is exactly the same, just different name-tags basically. Where I would disagree with you is on the 1st point. I don't care at what shop/group you are, as a 3-6 months old analyst you are very unlikely you get put on a live deal, especially a $1bn+ one. This of course depends on luck. if you're in a group with 6-7 1st year analysts not all of them will get a chance to work on a deal 6 months in. If you're in say consumer/retail and there's only 2 first years, your chances are much better. Group size matter in my opinion. Also, even if you are working on such deal your role will be minimal as 90% of time you will work with an analyst 2-3/promoted associate on the deal and he'll be doing the interesting stuff. If he's cool he might give you better work and teach you how to model.