PE Position.... or is it?

That is not a PE position. My guess is that there will not be any track to jump to the investing team of the sponsor in question; however, if you have solid operating experience and a long enough track record, you may eventually be able to join a PE firm as an operating partner (still not really a deal guy though).

If you do well in this role and maintain good relationships with your sponsor, they may look at you for other similar roles at other portfolio companies.

Thanks for the response. I would like to be on the deal side but they said no spots are open. I am wondering if I do a good job and help them to obtain their goals. In that way, I undertand how they look at companies and their investment criteria.. which could be used during deal search process..

I could be wrong.. but the positions seems interesting ... I just dont want to be in a situation where I cant return to IB, or PE because of being in operating function..

Your feedback is welcome again!

thanks,

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i have never seen anyone getting into a mega fund in this way at the junior (VP or less) level.

^just to clarify.... this is not a PE position.

Folks,

Thanks for the feedback.

What would be the difference between me and a person from the fund working on a portfolio company. If I or the fund are working on 90 day plans and implementing new operational drivers. Pretty much we both are doing the same thing... the only difference the fund sets the target and company has to meet it.

Both of us and I will be working towards the IPO exit... I am finding it confusing that i would be part of portfolio company but still doing what a PE investor does during value creation?

I just to make sure that my skills turn in to asset if I want to move in to a PE fund or any buy side stuff..

Can anyone refer me to PE deal and case studies where I can learn more on cases and value creation process..

I am more keen on the buy out process and PE fund mechanics..

Thanks everyone.

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It's not impossible to turn a portco gig into a PE Associate job. I've met two people who did this, one of which was at a megafund.

Thanvanburenboyz,

thanks for the input .. do you mind if you can PM me and let me know what position were they in an little more details... just trying to learn more about it.. thanks

The company's going public?

long term plan yes

The difference between you and the guy at the PE fund is that 100% of your day will be executing on the 90-day plan, value creation, etc., but it will probably only be 10% of the PE Associate/VP's day.

In addition to working with you, he'll probably be involved in a similar magnitude at other portfolio companies. The rest of his day will include evaluating new investments (models, investment committee memos, etc.) and executing new investments (due diligence, debt docs, purchase agreement, etc.).

You're quite green, eh?

This isn't too difficult. You working at the portfolio company, so you will spend 100% of your time dedicated to the development of this company. You may look at acquisitions for the company, work on the financials, etc. but you will focus all of your efforts there. On the buyside, you are focused on many different potential investments at once and you very rarely get into the nitty-gritty of the business. You may check in from time-to-time with the sponsor, but you won't be interacting on a day-to-day basis (at least not until you enter the exit process). It's quite possible that this experience will, at the end assuming you do well, give you an opportunity to move to the investment side of things SOMEWHERE, but it also may give you the opportunity to move into an operating role with the sponsor (i.e. they move you to another portfolio company in a similar, albeit elevated (hopefully) role to do the same thing). This is a pretty sweet gig my friend. It may not happen at the junior level, but if you're able to work your way up into a more senior position in this role, you can earn some big bucks — think about getting equity as compensation, and then killing it on the exit, take a few months off, then go work for another five years at a new company and do it all over again. To each his own, I guess, but this is a pretty sweet lifestyle.

I know a few people who do this... they moved over from banking/accounting to become a VP of Finance (or some related role) at a sponsor's portfolio company. When the sponsor exited the investment, they asked this person to move to a new portco in a more senior role. Went through the same process (about four years, then an unsuccessful exit), and then the sponsor asked the person back as the CFO at another portco. Guy got a decent amount of equity as compensation over the following six years, sold the company (pretty good returns for the sponsor) and killed it. He took a year off, then ended up going to a new sponsor's portco as CFO again.

Oh, and the other great thing about this: lifestyle. The guy I referenced above worked about 40-45 hours a week pre-CFO, unless they were working on an acquisition (still, I don't think he ever spent more than 50 hours in the office in a week), and got paid well (not banker/PE/HF pay, but really good nonetheless). Once they entered the exit process and got underway, hours increased, but still never really surpassed 55-60 hours. As the CFO, he worked slightly more, about 50 hours a week, but he had the freedom to really work from wherever he pleased. He also never, ever stepped foot in the office on a weekend and never had a vacation blown up.

Guys,

thanks for the info! much appreciated!! I will get in touch with some of you through PM!

Folks,

Just had another question.

Once I am done with working with the portfolio company and done with valuation creation and exit process.

What do I put on my resume ? the name of the portfolio company? or the mega PE fund? or both?

Also, before I start to work on this new gig... Can I ask the PE fund to have me on the fund side as a operational associate .. I am willing to work on the operation and valuation creation at the portfolio company full time. I just want to make sure that I have the PE fund name on my CV .... just in case ..

As usual your advice is always appreciated..

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