Hello,
I was wondering what people thought about advisory + p/e places. From the website of these firms it seems like they do both pure advisory and growth equity investments. An analyst would be doing both, so it would be a good way to gain ibd and private equity experience.
Are there potential conflicts here? Would it be a good place to work? Easy to jump to other p/e places afterwards? An example of a firm would be a place like Broadhaven Capital Partners. http://www.broadhaven.com/
I'm curious because I haven't really seen this operating model before...
Thanks.
In the case of Broadhaven, it seems like it was started by two senior bankers who both cover the financial technology space. This is a common sort of thing for a couple of senior bankers to start when there is a lot of layoffs and turnover in the BBs. In fact, this is how my current firm got started, only that was started in the wake of the 2000-2002 tech crash.
Typically, when these things first get started, the founding partners tend to be relatively flush with cash, so will tend to be more flexible and enjoy much more freedom in the kind of deals they do. This usually means that they are often tempted to co-invest in their clients or other companies in their sector because they know the sector well, see an opportunity and have the personal capital to do the transaction.
My advice is to be careful with these firms because they tend to make a big splash early in their history (since they still have high level connections at big firms, big deal mandates in hand as well as a small warchest). Once they get past this early phase, they either grow quickly (adding lots more senior bankers or raise a real fund) or they get trapped doing small deals or consulting on the low end of the market. Either way, you have to work well and proactively with the Partners, because that's the entirety of the firm.
Thanks for the info Ian, very useful.
Anyone else?
Bump want to learn about exit opps from these places vs traditional ib. Which should I take if I want to make it to growth / early stage investing?
I'd imagine it depends on the strength of each shop. But I believe a lot of the time, merchant banking actually is the exit opp
bump
Bump - wondering the same for firms like Incentrum, Raine, LionTree, etc.
bump
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Also quite curious about this. What about the firms that do wealth management as well? Firms like Stanhope Capital in London.
Seems like most the senior guys come from strong background and have diverse juniors.. some bankers, some big4, etc
Alvarium
Bump what are the top merchant banks? How much does each pay and what are the exit opps like? Particularly interested in NY based merchant banks.
Exit opps vary significantly by individual but comp is generally very strong. In line with top EBs.
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I'd classify them as 'merchant banks;' some raise formal institutional PE funds, some don't; the largest who have raised funds being BDT (more known for investing side due to success of fundraising & returns), Raine Group (TMT/sports), Incentrum (life sciences), Berenson (media), Carl Marks (distress; aerospace & defense), Tudor Pickering (PWP; energy), American Discovery, Seabury (airlines; some distress w/in aerospace & defense), Broadhaven (financials), Birch Lake, etc. Some have greater delineations than others in terms of junior experience btwn IB & investing.
Which banks have good/bad junior IB experiences?
Depends on what industry/product and what you ultimately wish to cover, but Raine Group is solid & well know among recruiters. BDT is more of a PE recruiting opportunity. Dock Square (jeb bush jr, FL-based) is a new one. Carl Marks is really old & traditional but well known within IB & turnaround restructuring on the advisory side. Tudor Pickering is really strong in IB & well respected among recruiters too. For some of the others I don't have much or anything positive to say.
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