New Tiger Cub - would you join?
Don't want to disclose too much but may have to opportunity to join a new tiger cub (spun out of one the more established ones Coatue/Lone Pine/Maverick /Tiger Global/Viking). What are some of the risk factors to consider when judging to join one of these? Would I be an idiot to turn it down?
For context at a top BB, went to target, and currently a 1st year analyst.
Interested
I'd join in a heartbeat. Speaking of which, any chance you can share the name of the new one popping up so we can try and hop in.
One of my investors joined one early on and made ridiculous money, retired quickly, etc... I think it's worth the risk b/c if things don't work out you were still at a very reputable firm, it's not like it will be hard to find something else.
This is not accurate. A Tiger "grandcub" like the one you'd join doesn't have anywhere near the prestige of a Global, Blue Ridge etc. I have seen dozens of Tiger grandcubs fail to take off.. they remained at $200m AUM for 3-4 yrs, never took off. Then there are a select few which are a resounding success.
Pay close attention to the founder's pedigree. How much capital does he have to launch with, with what fees, what team and prospects, etc.
You may have "Tiger" on the name, but working for someone who worked for someone who worked for someone who worked for Julian 25 years ago does not mean much anymore.
MMPM is right. Tiger fund spins are a dime a dozen. Some have done well. Many have flopped.
As another 1st year looking to exit, do you mind mentioning how you were able to find this opportunity?
100 percent do it, since you’re a first year analyst
How would you consider AUM / IP at a place like this. Say there was a Coatue partner who spun out and has $300mm + 1 analyst, would you join?
Bump
There have been too many Tiger cubs, grandcubs, and seeds over the years for it to have any real special meaning anymore. If its a big-name launch, then sure. Something like D1 or Anomaly. But otherwise, it is far from being a no-brainer.
How do you diligence the new funds if they aren't headline launches? Is it not worth thinking about if they are less than $500mm?
You can call up friends who worked with him at his previous fund or who work at an endowment/foundation that is generally up to speed with all the new launches. But even then, it's hard. The reality is that, as a prospective employee, you are working with a lot of information asymmetry. So it will require a big leap of faith.
.tb_button {padding:1px;cursor:pointer;border-right: 1px solid #8b8b8b;border-left: 1px solid #FFF;border-bottom: 1px solid #fff;}.tb_button.hover {borer:2px outset #def; background-color: #f8f8f8 !important;}.ws_toolbar {z-index:100000} .ws_toolbar .ws_tb_btn {cursor:pointer;border:1px solid #555;padding:3px} .tb_highlight{background-color:yellow} .tb_hide {visibility:hidden} .ws_toolbar img {padding:2px;margin:0px}This is kind of your first chance to demonstrate your ability to scuttlebutt a situation. It's just in this case, your career and money are on the line too.
Hedge fund is a small community, if you make enough calls (law of large numbers), you should construct a decent mosaic. Just keep in mind what your sources are - everyone has their biases toward your target of interest. If half of ppl you called said your future PM is a psychopath, that's bad sign. If 90% of ppl you called said your future PM is good investor and decent person, it's your decision whether you wanna bet a few years on the fund scaling to certain point because at least you will be well treated and mentored.
You are joining a declining industry where assets are consolidating to the established, assume most funds won't scale to the point of your liking. So if you prefer to join a more sizable launch or established fund, totally understandable. Just as an investor, you know that market is efficient too, sizeable launch / established funds are more competitive to get into. For a launch, they can poach from their current funds for juniors without hiring, knowing the juniors already molded or religiously believe in the investment process / philosophy.
basically what MMPM and hominem said. Grand-grand-cub is losing meaning so only consider if 500+mm launch. If you're of that caliber that you are getting this opp - good chance you'll be able to land somewhere bigger too.
Too easy to assume you're the second man at the next Tiger Global/Cat Rock vs the actual reality of most HFs shutting down or never scaling up to promised size.
Ignore the other kids in banking who are telling you to take it and then asking you for advice on how to get an opp...their lack of industry knowledge is apparent.
Tiger is a grand name.
had this opportunity. passed on it, but sometimes I check in on them (they are doing pretty well) and get serious FOMO
Tiger Cubs among the best reputations in the industry (of single managers at least) when it comes to sharing economics with the team. They also tend to have apprentice-ship cultures (but I think this varies more depending on the fund). It's definitely not a guaranteed they'll be successful at fundraising / scaling just because they came from a tiger cub, but given the first 2 points I'd imagine the upside is probably more real for an employee than most new fund launches.
At a tiger grandcub. Economic sharing spot on, culture-wise very collegial and intellectually stimulating.
Fundraising depends on performance, but with tiger blood, opens a lot more doors and gives an edge over others in the same bracket.
Unless it is Anomaly or Alua, go for a bigger, more established fund. You can make the move to a newly launched fund later, if you so choose.
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