Advent Tech
Anyone hear what's happened there? Sounds like there was a pretty big reorg where everyone was assigned into specific verticals, and performance / recent deal activity has been bad. Would appreciate any other intel that people have heard
Based on the most helpful WSO content, Advent has been actively building out its TMT (Technology, Media, and Telecom) business, particularly after hiring one of the former heads of TPG's tech team to lead their new technology investment efforts. This indicates a strong focus on expanding their tech platform, including both minority and control investments.
However, there isn't specific information in the WSO threads about a recent reorganization or performance issues. If you're hearing about vertical-specific assignments or underwhelming deal activity, it might be worth keeping an eye on their developments or seeking further insights from those directly connected to the firm.
Sources: Thoughts on Thoma Bravo, TPG Tech, KKR TMT, Silver Lake, other tech PE funds, New York Technology Focused Buyout Shops, Week 3 of IBD Internship: The Pitch, https://www.wallstreetoasis.com/forum/investment-banking/former-bb-sa-to-big-tech-engineer?customgpt=1, An Overview of Technology Media and Telecom (TMT) - Part 1 of 2
I only have ancedotal knowledge of this group from IB friends now within Tech PE space. Advent Tech overdeployed during CY2020 / CY2021 and paid "top-of-market" deal entry multiples that you noted has played out problematically
I’m sure they’ve had some good deals too, but were in Thrasio (Amazon seller roll up) that has handed the keys to the lenders.
Yup, rough deal. The got burned along with others like Silver Lake on that Thrasio fiasco.
Did the restructuring lead to any layoffs in this group or is it expanding?
Have never heard of any examples when restructuring led to headcount expansion
Group has never been restructured since its inception (when the head of the team was poached from TPG). The team has historically been (and still is today) the largest team at the associate, VP, and MD level. Can literally verify by checking the team page.
So much misinformation on this thread
Heard they will kill the product. They will launch a mid market strategy though.
Basically most PE players that launched growth strategies are doing the above btw.
Any idea on timing for mid-market strategy launch?
Not sure why mods nuked the comments, I don’t know Advent’s mid market’s mandate but would assume both US & Europe. Not sure about Bain shutting down growth, but wouldn’t be surprised if we see more of that, growth has struggled immensely and is quite a different investment style than what traditional buyout players do. And they all joined the bandwagon at the market’s peak in the late 2010s.
Just flat out not true - the fund is in the market raising right now alongside the flagship fund which surpassed 20b in 9 months lol
Have a friend who works there - sounds like it’s still business as usual, no significant reorg activity
Wiz is their big winner, they led their series B
Would prob put them at a low first quartile high second quartile performer (obscured a bit since they also invest out of their GPE buyout fund)
Their tech vehicle sounds a lot like the TPG healthcare side car - at the end of the day, their tech team benefits from being folded into the broader Flagship PE structure
helpful - any sense on culture and overall associate learning experience
Culture pretty solid from what I’ve heard from my buddy - middle mgmt and seniors are fair / reasonable, associates seem to like the job / not want to quit
From a learning perspective, if you want to be an investor, it’s hard to beat a place like Advent or H&F. Given they only focus on one strategy (PE) they market themselves as “alpha” shops that are focused on making great bets and creating outsized returns (rather than riding beta and focusing on asset accumulation, as they would argue is being done in the public alts)
Tech team is cross staffed between nyc and palo and there’s lots of travel between offices
Like Advent overall, tech tends to hire from just a few shops in banking / consulting
This yr they have kids from GS/MS/CVP/Bain. Heard that next year’s incoming class is all either GS TMT or Bain
I don't understand how you reconcile the comment: "low first quartile high second quartile" performance" with alleged news that they are shutting down their dedicated technology strategy. Achieving these aformentioned returns would not result in the latter outcome.
I work at a competing MF PE platform. We maintain a running database that tracks all deals done by competitor, Advent included. They acquired Prometheus alongside Leonard Green but it's unclear to me what other deals this group has done in L3Y / L4Y window...
Whoever commented that they’re shutting the strategy down evidently doesn’t work in MFPE
Thoughts on future outlook? What deals have they even done. What would you take them over within tech
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