Are search funds just wage-c**k factories?
Two unpaid search funds. One paid boutique IB gig. Thought I was finally escaping the intern trenches at $40/hr.
Boss then proceeded to wage-mog me into another dimension and informed me summer pay isn’t happening.
Went from building CIMs to rebuilding my Subway application.
At this point my entire career has just been finding increasingly sophisticated ways to exchange Adderall and caffeine for experience points.
The comp trajectory has gone:
$0/hr -> $0/hr ->$40/hr -> complete chud
Curious if search funds/ unpaid IB were actually worth it for anyone here or if we’re all just participating in the world’s most elaborate unpaid labor cartel.
I'm also doing unpaid searchfund right now, wish I got paid at least a couple bucks an hour lol.
Brother, getting paid is a luxury good in this asset class.
My compensation history is basically:
Search Fund #1: unpaid
Search Fund #2: unpaid
Boutique IB: $40/hr
Boutique IB (summer update): unpaid
At this point I’m just collecting line items on my résumé and hoping a future MD takes pity on me.
Dosent the US have a federal minimum wage of 7.x dollars?
yeah but these searchfunds and stuff you don't typically sign any contracts so not really
lot of finance jobs depend on interns working crazy hard for little or no money.
Between working at a search fund or in a back office in Mumbai, I think the Mumbai office is far more respectable
I did two search fund internships, one in the summer after my freshman year and one fall-winter sophomore year. Both were unpaid and remote. As anything other than resume additions for IB recruitment they're useless, but within that narrow purpose I thought they were worthwhile. In my second internship one of the guys running the search fund pulled me into a live deal and let me make a baby LBO (doubt he looked at it) and some slides for his investors (he probably remade them), but at least seeing what a deal looks like and modeling it at a basic level was very helpful experience for later interviews. Was worthwhile for me in my opinion. Founders are usually 2+2 guys who can give good insight into early finance careers having done it themselves.
I do not understand search funds from the founders perspective. The guys I worked for gave up megafund and potential SM seats, and while I respect the hustle they put into the search grind, there's no way its the right move. Especially considering 99% of search funds at least back then were buying b2b SaaS companies which didn't age well.
For a lot of people it's pride/wanting to "do your own thing".
Yes it is an unpaid wage cartel but there’s potential to get something out of it. If u get lucky and find a search fund with an actual pipeline u could get something solid experience. I had a search fund internship and a paid boutique internship and I can confidently say that the dealflow in the search fund internship mogged the IB internship to oblivion.In the Boutique IB intenship I was doing CIMs for ShitCos with one illiterate plumber representing management. In the search fund I worked on 4 live deals all above $20MN EV. On the largest deal did a waterfall analysis, looked at equity co-sponsor proposals, and worked in an actual competitive bid process for a $120MN business with offices in 5 countries (we couldn’t close but still great opportunity). As a general rule of thumb there’s a lot of variance with search funds. But if u land a solid gig the lack of pay is offset by the experience.
Search funds are very hit or miss and I would recommend any freshman to research the founder more than what the job description will say. You won't necessarily get a BB offer out of it, but depending on who runs the fund, there's good opportunity to get something of value out of it.
The one I was at, the dude running it was ex-Citi and went on to get MBA at an M7, and because he was a great mentor, there was a lot of good learning experience especially when you are at that age in college. It was unpaid, but if you did a great job, he was very willing to slide contacts that he had at Citi which actually were helpful when it came time to recruiting.
In praesentium et consequuntur autem sed possimus asperiores. Assumenda ratione veritatis modi. Eius voluptas aperiam quia ut.
Eaque commodi iusto aspernatur porro. Dolor et consequatur qui magni. Consequuntur blanditiis quia ut at debitis consequatur corporis. Ea vel quibusdam odit velit vel vitae neque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...