Vista or Thoma Bravo HF exits?
Anyone know if Vista or Thoma Bravo have solid HF exits? I'd assume so given that they're top funds in tech, but am curious to hear first-hand
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Depends, do they underperform the S&P500 or not?
given the growth trajectory of both in recent years, i doubt the average thoma / vista employee would want to leave for HF land
Lol I'm on the other side and would gladly go to Vista or Thoma Bravo... grass is always greener
Vista exits have mainly been to crossovers and only the analysts have really left. 2x Dragoneer, Coatue, Flight Deck, and Greenoaks. Seems like most people look to rise through the ranks. I'd assume that any An/Aso at Vista or TB could, at a minimum, get interviews from any HF they choose, but it seems like many stay due to the solid returns of both firms and visibility/feasibility to advance for senior roles.
TB has been killing it lately, and I don't see why an associates would leave considering the forecasted growth of the firm. We'll see if Vista analysts start to jump ship due to the increased negative press of Smith, and there are rumors that they're struggling to fundraise. I assume that if they hit their target then most will stay, but if they miss you may see a lot of people exit.
Think abt TB. Those associates would probably only consider leaving for like 6-7 HFs (tiger, Pershing, lone pine, viking, dragoneer, altimeter, maybe like 1-2 more). If the associate stays in the TB seat for a decade and makes partner, one day they’ll probably be worth like $100mm if not higher. TB returns are great, software isn’t going anywhere (maybe this is all a bubble and we’re but let’s assume it’s not), so returns will continue to be great and carry will be huge. They will all be rich. Can that comp be replicated at those HFs? Not sure. Interested in others’ thoughts
I know some folks at TB and can confirm pretty much everything you've laid out. Being a lifer at a scaled and rapidly growing platform like TB is that healthy medium between the risk averse IB and high flying HF folks. More leeway over the life of a fund and control over the investment in comparison to a HF but still able to have absolute homerun deals ("trades") that pay off handsomely with how carried interest is treated from a tax perspective. Very process-driven and a people-intensive like IB (literally often thought of as IB 2.0) but you're the one in the driver's seat vs just pitching to or adjusting things for clients running processes. It could be seen as a positive or a negative that feedback cycles are longer on the private side, but there's a pretty well understood truth that if anyone from these funds wanted to move to the public side there's plenty of reputable funds that would snap them up.
Agreed. Economics are unreal -- TB raises $25bn funds, probably does north of 3x MOIC (again, if not higher)...apply your 75 - 150bps of carry for a partner and that's a hefty $75-150mm, for a single fund. That, plus the safety of a PE career, plus you get to invest in software, plus tax benefits of carry, and it's really hard to beat. It sounds like the best seat in all of MF PE (comp wise for sure, idk about culture but its techy so probably better). Rumor is the principal from the Ellie Mae deal made $10mm from the exit. I suppose the downsides are (they're stupid imo, but) 1. A bit longer road to partner vs a few other MFs (APO is under 10 years, TB probably closer to 15), and 2. You miss out on the master of the universe PE old school suit and tie vibe that sits with APO BX and KKR (it's just so dope!!).
Please, correct me if I'm wrong, but the comp and stability seem very hard to replicate in HF world (even at those 6-7 funds?). In terms of exits, a TB associate can probably lateral to any of those 6-7 funds the guy above named. But they haven't, telling me the seat really is that good. NOW, someone on WSO did mention that partners at Dragoneer are making $15-25mm a year, so...
It is for sure a bubble. They will still be rich
How do these two compare to Hg? Know it's smaller but seems to be doing well
Hg is pretty tops for EU. What they've been doing with Visma is nothing short of impressive. I also know the team at a recent growth investment they made who were absolute tops and had nothing but great things to say about their software guys.
Can add hellman & freedman to this list as well, not strictly software focused though. Just raised a 25 billion fund. Have killer returns and a very lean team too
Agreed. My view is that TB, H&F, and maybe like WP/SLP are the best seats in MF PE comp wise
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