From IB to Formula 1 Team - TOTO WOLFF MERCEDES
Hi all, assuming a few of you here are into formula 1 I was wondering how "realistic" Toto Wolff's path to wealth would be for those going into Banking?
as a disclaimer, I have not yet done an IB internship so forgive me if this question is just awful.
From my understanding, Toto wolff (TEAM PRINCIPAL OF MERCEDES FORMULA 1) worked as a banker after studying Economics in college.
And then worked for a steel manufacturer for some time before starting his VC fund, this is the interesting part. He allegedly did not have much money when he started his fund but had a client that wanted to raise money from investors and when he found investors for them, he charged the company equity hoping that he could sell later on when their stock was worth more or when they IPO.
This happened in the 90s when tech was emerging and improving.
He then got back into motorsport by managing some young drivers and supporting them, later invests in HWA (builder for Mercedes engines in lower championships) and takes it to an IPO.
I know this is a bit all over the place, but is this viable in todays age? At what point could someone realistically have the experience to be able to take on a client (like toto did) and find them investors?
Thank you everyone!
Yes, one of the most common exits
Thanks for replying, but I mean about how he started his fund. I know its not the most common path but could someone start that venture after their 2yr analyst stint? Is there a reason this isnt discussed more on WSO in favor of PE exits or Grad school?
Hopefully im not coming off as a troll, im asking this question genuinly
Because nobody wants to give money to a 20-something wanker with 2 years of logo-aligning experience.
Thank you
Wow - I think this is a really cool path he took. Had no idea he was previously in banking.
Thanks for commenting! Do you think that the way he started his VC fund is achievable today post the Analyst stint? Howcome the idea of "charging a company equity" as a fee is not more talked about? howcome most people prefer working for a PE firm or go to Grad School?
Thanks!
I am not in banking however have had the pleasure of working with a few managers/founders of hedge funds and things of that nature. From what I know it’s kinda just need based, you have someone with a lot of money who needs to invest, and someone who needs money.
Like the above commenter said who would trust a inexperienced kid with money but someone trusted you in IB and that can be considered pretty important responsibility.
I say all of this because the sentiment I got from all of the managers I talked to is it’s about (who you know, earning their trust, and proving your ability) to use your example of Toto, he earned the trust of the business who needed capital and he leveraged that to other people he knew were investors using credibility from the original business. He used his soft skills and I think that seems to be the biggest difference between jr bankers and people like hedge fund managers, jr bankers are yet to truly hone in things like networking passively and selling yourself your partners and anyone who is willing to pay you for it. I want preference this with I am not in IB I just worked with professionals in the field in unrelated business and I like to ask questions. Hope this helps?
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