My friend landed a job at a PE firm after interning there and will start out as an analyst. The firm has 14 employees and 9 investment professionals (he is the 9th). The PE firm has AUM of about $200M and focuses on industrial and tech companies. They have one company that they will be selling for $100M, and will then try to raise a second fund, not sure what the second amount will be, and as it grows will be looking to hire a couple more employees (perhaps one analyst and one associate.) I am curious what type of experience and exit opps this job could lead to, as I chose to take a more traditional path out of college, and my friend is about the same quality of applicant as I am.
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There are many possible opportunities from that come to mind.
These are just a few off the top of my head. The opportunity is only as good as you make it out to be,
Thanks for the reply. I was wondering in terms of opportunities within finance, specifically investing. Him and I weren't rockstars in college that could land Goldman TMT or Blackstone right away, more like middle market IB and lower tiered bulge bracket, so there must be some trade off to this. Also there is the possibility that he got lucky and joined the firm at the right time right before it takes off. As I mentioned they had one great investment that they'll be selling for $100M that should double or triple they're AUM once they raise a new fund, but as as an analyst/associate does this really matter if you don't have carry? Perhaps you just get a slightly larger bonus.
In all honesty, it sounds like you are jealous of your friend. You should be asking these types of questions with regards to your own opportunities, who cares what opportunities other people could possibly get from a certain job. Remember that most people quit finance after a few years anyways.
To answer your question, there is some potential upside in joining a small fund when it starts. If you are there from the start, it could be easier to work your way up the ranks for the firm. Also, since it is a small team you will be able to get more responsibilities and be able to potentially add value much faster. An example of this would be working as an analyst and finding an investing opportunity that seems legit and presenting it to one of the partners or maybe you know a wealthy family and you can hookup the partners with a new potential LP.
In terms of opportunities in finance, it depends what you want to do. I would not recommend starting at a lower middle market fund if you want to do IBD and why would you want to do IBD if you are working with a cool team in a growing fund? The pay is probably lower at the PE fund, but if you gain respect from the guys, they will probably let you co-invest no fee no carry. This means that if they are good you can invest your capital at a 18-30% IRR.
It really depends on what you want, perhaps your friend should be the one asking these questions. You sound like you value prestige way too much. However, if this is the case there is a way to get into larger funds from this work experience. Several funds have divisions that focus exclusively on the lower middle market. I think Platinum Equity and Onex have a small cap fund.
I'm not jealous of my friend, however I am very much so pleasantly surprised and intrigued by his developed role. Jealous no, envious perhaps. I chose to take a more traditional path with a larger company that pays in the $70-90k range out of college because that is where I feel comfortable. I turned down applying to this PE firm's internship and so I am just genuinely curious about the opportunities that he may get.
Working in lower-MM PE, I second this
Is this firm based in LA?
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