Pitching investment ideas to senior
I just got in as an equity analyst and working on stock pitch due in a week. On track so far. My division is Buy Side pension fund, Equity Research.
I recently came across a major domestic logistics player.
The ecompetitors don’t come close to the assets they have
The company is private,I have interned there few years ago, about to IPO next year. Would this be under PE or Infra?
Since I’m new here, who do I pitch it to? Who should I trust? Find someone in the PE team or my supervisor in Equity research team?
Any advice from experienced people here?
How should we know?
Just asking for friendly advice? Cause I’m in a different rotation than what this company should be pitched in. Sorry didn’t include more info earlier
You haven't specified if you work in buyside or sell side. The type of org you work in. E.g. it's a bit confusing you refer to someone as your "supervisor". That's not a common title in ER.
But anyway you're talking about a stock that's about to IPO, why would PE care? It's about to be public?
What are you pitching this based on? Since there are no public financials yet I assume? Just that you worked there?
Sorry my bad. Working in Buy side, a pension fund. Im on a graduate program so rotating in few divisions. Currently equity research then real estate and PE. Assigned to a supervisor who covers developed markets equities.
The company - just an idea because it’s a logistic company and their competitors have 30-50 trucks compared to them having 600. They’re about to make it a monopoly before going IPO. Probably in 1 years time or more
I’m new to this so just thought of it as an opportunity - what can I do with this? Or there’s nothing
This isn't really anything. It's not a pitch. Saying one company has more trucks than another doesn't make it a good investment. Otherwise investing would simply be "buy the biggest company in each sector".
You can say there's a company potentially IPOing next year that could be interesting to look at. But nothing is going to come of it right now.
You're in public equities. Focus on pitching public equities.
These are just few I’ve got because they are not public so no financials yet but after sending reports to audit company they have a valuation of 430million.
What else should I find out before making my case?
Basically none of these factors make it a good investment. An investment is what do you think the company is worth Vs what does the market think it's worth + what is the pathway to getting the market to see what you see. That's public markets investing. But there is no public market for this corp. That rules out interest from your supervisor. Nothing they can do until IPO is launched/pre-launch.
You've said the biz is going to IPO but it doesn't sound like they've actually registered for one so how do you know?
As for PE, since you're at a pension fund, I highly doubt they're doing significant direct investments. Probably more coinvestments or even manager selection. Either way, you can't just buy anything. PE funds have mandates, just like public funds. If we ignore the potential IPO, does this business even fit the mandate of your firm? Do you know what the mandate is? Are you even allowed to pitch PE business from a compliance perspective?
You clearly are very new to this and have a lot to learn. You seem to be trying to provide value but I would focus on learning for now since to be very frank, you're coming off as very naïve.
Thanks for replying. I agree with you, I do have a lot to learn. Really appreciate you being frank btw. Thanks
You should find out literally everything else there is to know about a company for an investment pitch since you have none of it currently. How are you employed in public equities wtf lol
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