Joining a $100M Healthcare L/S?
Currently in SS (biotech) with an opportunity to join a SM L/S (healthcare only) around 100M aum. Fund won’t be raising money and has been around for last 7 years (most $ is PMs). Performance has outperformed healthcare benchmarks YoY consistently (started much smaller than 100M). Consists of PM and COO and want to bring in one Analyst (headcount of 3 total with new analyst). How should I think about this? Worth the move or wait for other opps?Comp to ask for? Carry?
Side note: I’m happy with my current seat and only about 12 months out of graduate school (PhD)
Breaking into the buy side is hard and this sounds like a decent option. I’d probably take it if the PM seems like a nice, normal person. I would be highly surprised if you were offered carry with no buy side experience but you should ask about expectations for base and all in comp before accepting.
Thanks for your reply. My main pushback is it’s too early and I need to continue getting exposure to buyside/the industry. Being at a bank with a good analyst, this is a big plus atm. I feel working at such a small 1-man (COO doesn’t count) fund, while I’ll learn a ton, won’t give me as much networking exposure (really at all). And then what happens in a few years - is it feasible to move to a bigger shop if I wanted coming from a small no-name place?
I think the best way to get buy side exposure is by working on the buy side. There is ample opportunity to network and meet people at conferences and sell side events. In general I think it’s easier to move from one buy side job to another than to get your first buy side job.
Seems like too much risk with binary outcomes. If I was you, I would get more reps at your established place and go somewhere with more stability. $100mm is light on AUM and large swings will either make or break your career.
A lot of it depends on your LT goals - do you want to be on the buy-side? It sounds like you would like to eventually move there given your commentary on waiting for other opportunities.
I think in reality this fund has decent staying power and clearly has survived some pretty hectic healthcare markets. I think boils down to if you get along with the PM and have an opportunity to grow into the seat... both with comp/equity/carry + autonomy (perhaps you're never the one trading but you have a decent % contribution to the portfolio and PNL) then it's a no-brainer. It's not a startup fund even if it is the size of one.
Also considering you'd be 1 of 2 total investors on the team it'd be a pretty awesome learning ground to be. Sell-side will always be there to a certain extent but if you're inevitably going to try and make your way to the buy-side I think this seems like a unique-enough opportunity...
Again will boil down to what they can pay you and if that's OK for what risk you'd be taking but I say go for it
Very helpful. I agree, the PM is good. Returns have been extremely impressive since inception.
What type of SS shop were you at? That makes a big difference in biotech. If you’re at HCWainwright or something then yea take the BS job.
If you’re at Cowen/ Leerink then you’ll get looks at larger funds especially when biotech markets improve.
Not at a bucket. Good shop with well known Analyst. And yes, agree.
Hmmm ok ok well then up to you. How much of a pay bump is this new gig? Feel free to DM
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