PE Networking

Alright.. So let me preface this as anyone who has seen me post before knows that I have been very pro-banking for a career. With that said I am really starting to consider life on the other side.. At least while I have the opportunity to recruit.

I have started talking to headhunters and people in the industry and its gaining some internal momentum. My main worry in recruiting buyside is that I will be booted in 2 years and have to face an MBA or recruiting all over again, which sucks.

BUT, I do love the diligence process and digging into a compan... The benefit of being on the GP side of the equation is HUGE... Obviously pre-mba's don't get carry but it is a great business model if you can stay in the industry and skip an MBA or get back post-mba.

I'm just finishing up the year and am expecting my snazzy bonus shortly and am starting to try figuring out what I want to try doing and where I want to try going. I have compiled at least an initial list of places I would really be interested in learning more about, and am trying to figure out what the best way of approaching people at the firms is.. Is it socially acceptable to just shoot over an email? Or do you guys use linkedin? My bank (as I'm sure most of yours also do) has a database of pretty much every firm and people we know there and contact info.

 

HI, I currently work in a boutique PE firm, and I am just a analyst. Our company is small with only 5 people. I think we use LinkedIn and also, net work. Cold call or an email is not common, socially hard to be acceptable. Hope this helps. Thanks.

 

You can shoot a cold email over but it's obviously better if you can get warm intros from contacts using things like LinkedIn, referrals through senior guys if that's kosher in your group, alum or something/someone else you have in common. If you're going to go the route of headhunters try to find out which funds they're repping and make inroads on your own so that someone may know you when your name comes across their desk but do not try to go around the HH's because there's a good chance they can fuck you over unless you've become really close to someone at the fund.

If you're going for the larger funds, not only MF's but most of the decent sized funds, you'll probably need to get an MBA but that's not necessarily terrible. I never did one so I can sell all of the reasons you don't need one but it's definitely not a bad thing to have on your resume.

 
Dingdong08:

You can shoot a cold email over but it's obviously better if you can get warm intros from contacts using things like LinkedIn, referrals through senior guys if that's kosher in your group, alum or something/someone else you have in common. If you're going to go the route of headhunters try to find out which funds they're repping and make inroads on your own so that someone may know you when your name comes across their desk but do not try to go around the HH's because there's a good chance they can fuck you over unless you've become really close to someone at the fund.

If you're going for the larger funds, not only MF's but most of the decent sized funds, you'll probably need to get an MBA but that's not necessarily terrible. I never did one so I can sell all of the reasons you don't need one but it's definitely not a bad thing to have on your resume.

Completely agree. Just trying to gauge how it would be received. I'm mainly looking at guys at the Associate level who came from my bank. Cold email but at least something in common. I just wasn't sure what the "norm" is for PE. I can imagine a lot of guys start ignoring LinkedIn

 
Dingdong08:

You can shoot a cold email over but it's obviously better if you can get warm intros from contacts using things like LinkedIn, referrals through senior guys if that's kosher in your group, alum or something/someone else you have in common. If you're going to go the route of headhunters try to find out which funds they're repping and make inroads on your own so that someone may know you when your name comes across their desk but do not try to go around the HH's because there's a good chance they can fuck you over unless you've become really close to someone at the fund.

If you're going for the larger funds, not only MF's but most of the decent sized funds, you'll probably need to get an MBA but that's not necessarily terrible. I never did one so I can sell all of the reasons you don't need one but it's definitely not a bad thing to have on your resume.

Sorry, been getting ROCKED, on a couple things. I have been talking to some more senior guys that I work with VPs and SVPs and they said they would help me out and call whoever they know. I guess the next thing is trying to gauge timing, in not reaching out "too soon" that they are shocked you are reaching out so soon, but also not "too late" to miss the boat. Any ideas?

 
BlueShirt:

How come you're thinking about pursuing PE as opposed to staying in IBD for the long haul? Would be helpful to get your insight.

To be honest I'm not totally committed to leaving. I'm exploring my options. The option to recruit is closing so I want to explore it and if I get an offer for something I'm excited about, why would I not take it.. that said there is a disgusting amount of dry powder right now and the PE market is definitely pretty saturated so I'm not recruiting broadly nor do I want to.

If I don't like how recruiting goes or it doesn't really jive with what I'm looking for I may stay where I'm at.

 

Try to focus on someone you have something in common with (grew up in same town, same college, same prior job) and just be direct. "I am very interested in your firm and would really appreciate it if you would spare a couple minutes on the phone to allow me to introduce myself and to ask a couple questions. I am a fellow NYU grad and would be grateful for a couple minutes of your time."

Cast a wide net and reach out to lots of people because you response rate will be low. If you want something specific do not be afraid to be direct and ask.

I've been in PE now for 3 years at 2 different funds and people are generally willing to help out.

 
pureazn:
It is never too early to network and build relationships.

My worries primarily concern the relationships going stale between now and the 3 years when I'll actually be looking for a PE job?

-------------------------------------------------------- "I do not think there is any other quality so essential to success of any kind as the quality of perseverance. It overcom
 

sorry if this sounds stupid, but what kind of stuff do you talk about for 3 years (every quarter?) until you want an interview? i don't see this working unless you guys end up being friends and play squash or something more often. these "update" emails can only go so far

 

Too many ppl; too few spots on buyside. Everything is uber competitive --> standardization. Most important thing is being in right group, reaching out to headhunters, killing interviews - knowing ppl generally wont give you a push. Everyone at a megashop knows tons of ppl who would like to take the single digit # of spots they have.

 
ul8492:
interested as well. wouldn't knowing associates/principals help bypass the headhunters, and in doing so, the firm saves money..?

They don't care about saving the money part. But you need to remember that these PE guys get pinged by the brightest guys out there as well so unless your contact is pretty high up there (VP or above) who is handling the recruiting process you probably have no shot. Your best chance is to go the the top groups or else you have little to no chance to get into these megafunds.

Of course, it's a different story when you try to network in a MM PE shop where by reaching out might just grant you an interview on the spot.

 
leveredarb:
you guys are idiots, theres a guy at KKR that came from Jefferies.

in an investing role or cap markets? know there's a couple of ex-jefferies guys at kkr cap markets but that's the first i've heard of any doing buyside work there

 

This whole not getting into a megafund unless you are at a top group kind of reminds me of the not getting into BB IBD if you go to a non-target. It's hard, but not impossible.

"One should recognize reality even when one doesn't like it, indeed, especially when one doesn't like it." - Charlie Munger
 

Very very few profiles of mm ib to megafund. Youll see tons of non targets at Goldman or JPM but VERY rarely do you seen a non bulge or top boutique kid at TPG or KKR at least in the buyout fund. Maybe 1 every couple of years

 

Definitely possible. Get the experience and reach out to the recruiters and be persistent like you did when you were first getting into banking. Sounds like you already have a summer under your belt, so assuming you were a decent summer you should have some clout when it comes to getting first crack at the best deals right out of the gate. Work hard and get close with the senior bankers on your deal teams, and make sure you start early if you want to interview with the bigger shops.

 

tm11, how bad is the industry group that you're talking about, and why is it so lousy? are you sure you're not being hard on yourself? anyway, i agree with GameTheory -- persistence is key and tap any and all of your networks. recruiters may not come to you, but you can always go to them and if you make a strong impression for yourself and keep yourself at the forefront of their minds, they'll likely give you a chance. and if you want to move to a good PE/HF job, it doesn't hurt to get the blessing of the seniors on your team either.

​* http://www.linkedin.com/in/numicareerconsulting
 

numi, I guess I don't have any specific numbers, and I probably am being a bit hard on myself, but it is not a good group. It's one of your standard industry groups that is at every bank (ie Energy, Industrials, FIG, Sponsors, RE, Consumer, etc.), but it is probably bottom 2 if not bottom 1 in the bank as far as industry groups go. I don't know why it's so bad except to say that the MDs don't pull in as much business as they should, and the group has not done a great job of hiring outside talent. Additionally, I think this makes the group undesirable and hence it does not end up with the best analysts (I chose the group because I thought the industry would be interesting).

Thanks for the advice, though. I'll definitely be proactive and do whatever possible to position myself well for the buyside.

 

when you interview, you might just want to tell them that you chose the industry because you thought it was interesting, without mentioning anything negative about what you now know about the reputation. be very clear that you voluntarily choose that industry. if they ask what you didn't like about it, then maybe you can say something about things, but whatever it is, don't insult the people and don't rail on your group. maybe a good answer might be that you had thought you'd see more deal flow but it hasn't been so, and maybe it's just market-related. if they know your group, they'll know the reason for the slow business is probably because it's not a great group, but at least you'd be keen enough to realize that the deals that you were seeing weren't all they were cracked up to be and you're looking for a job where you can do more.

​* http://www.linkedin.com/in/numicareerconsulting
 

Networking can happen in any group more or less. The issue is in some groups you have literally zero access to PE firms and at least in a Sponsors Group you'll be interacting with them daily. You should use your 2-3 years to network all over the city if you are in NYC. Meet all sorts of people at various PE shops and throughout your firm. Get introductions wherever you can and follow up on them. Most of all, my serious advice is the best opportunnities are made if you are a TRUE rockstar. If you are your VPs and MDs will stand up for you and make the calls and just get you the job you are looking for. Be loyal and the best in your class and the rest will follow.

############ ############ ############ The time is now, seize the day ...
 

Ask your bankers and attorneys for intros at funds you're interested in. In london just have them set up drinks casually and pretend it's by coincidence if you don't think it's kosher to just outright say it. It will be a much longer process to get a new position so just do that as much as possible. Also, ask consultants, accountants and any other service providers you can think of who work with PE firms.

 

Thanks for suggestions guys, appreciate it. Unfortunately I rarely visit industry events... Good idea with using advisors for establishing contacts (although somewhat slightly non-ethical probably...)

Any other thoughts?

 

I would think the first step would be to talk with headhunters (obviously not the ones who work with you firm). Given you work at a well-known firm, I don't see why they wouldn't be helpful, especially since you seem to have a pretty clear reason for wanting a switch.

I think with your situation, you need some form of relation (getting an intro, having attended same school, worked at same IB, etc) in order to effectively network and meet people. I think it's fine to email alums (either from UG or bank) and say: Hey, I am new to PE and trying to build my network and meet other professionals in the industry and given we attended same uni / work at the same bank, I was wondering if you'd want to grab a coffee or drink sometimes. You just need to be more targeted at your approach.

 
Best Response

Well, it's not just the PE firms that you don't wanna piss off - you also wanna make sure you're not pissing off HH's also, since they are the gatekeepers. So hypothetically, even if the firm is OK with it, I wouldn't necessarily go around the HH. I would just take their request to not contact the firm on face value. If they say don't do it, then don't do it. If they don't say anything, then sure, go for it.

I would note that some firms view that sort of initiative very positively (generally firms that do a lot of more proprietary outreach, like Growth Equity and VC firms).

 

Yes, you would, because there are tons of great firms where reaching out can offend certain people with sensibilities. Platitudes like "You don't want to work for [ ] anyway if they judge you on x y z" are basically sour grapes. In fact, I would argue that better firms would value demonstrated interest (or even discount it) much less than the average firms because they know the offers they give out will pretty much be accepted.

 

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"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

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