Hello everyone,
I have followed WSO for quite some time now. I was offered an internship role for a new up and coming PE shop (2 man team so far, I will be the 3rd) that is classified as being a, "Finder fee," shop. Basically we look for companies our investors (other PE groups/investors) are interested in, give them the title/name/owner info along with some finances and let them take it from there.
We get paid based on the sale of the business, and it is structured at 5%/4%/3%/2%/1% + 1% after the 5th million dollar (more or less).
My job is to do the grunt work, verify ownership and business information/classification, and be part of the meetings where we are either doing the initial sales portfolio of the company or talking to the investors/PE group.
This is also un-paid, until at least the first sale is made.
What do you think? Is it worth it? My title is, "Private Equity Intern."
In order to answer that question, one has to compare to your opportunity cost, i.e., the best possible alternative you have.
What I can tell you is not to be dazzled by the title of your position. However, you seem to know quite a lot of what you'll be doing and it may prove to be a good spot to acquire skills for a more "conventional" PE fund.
All in all, if the other 2 guys have a good experience and if you think you can learn a lot, then go for it. If, on the other hand, you have a possibility to a regular PE fund, then I'd think about it twice.
Just be prepared that the work is not as good as it sounds
The two chums who are running the shop are not really good at what they do. I think I will most likely decline the offer and work on PHP/SQL projects on the side with my spare time. I understand I have a higher shot of getting into a PE shop without their name on my resume, sadly. The guys spearheading this finder/broker fee shop are simply after throwing numbers at these investors without checking for financials.
Glad if we could help in any way!
First of all, don't be fooled by the title. This is NOT a private equity shop. You're essentially a finder or broker and get paid fees on closed deals just like an ibanker would. If you don't have anything else, then sure take the internship. If your goal in the long term is to get into a real PE shop, then this place won't necessarily be all that relevant. A more traditional IB would be a better route.
Thank you for the insight. I am looking towards a long term PE career if I can get it. I will get my MS in Finance and then maybe go from there.
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