Are PE exits sustainable?
Hi everyone,
are PE exits something that people do (or rather, can do) all their lives?
I recently worked with a small cap PE fund with only 10 employees, 7 of which lateraled to the fund after completing the analyst program at Deutsche Bank; the fund has an AUM of a couple hundred million.
Now for them, that was, I suppose, the infamous PE exit. But I couldn't help but wonder: what if the fund closes? Chances are a small cap fund like this isn't going to be around for decades. They may earn well now but with two years at DB and let's say 5-10 years max at a no-name PE fund, who's gonna hire them if the fund closes?
In other words, is a PE exit really sustainable if you're not at a mega fund or at least a well known mid market fund?
As time goes by, you gain expertise and connections in the market. Some people will leave before, others will leave later. In the end, most skilled people should be able to move to another fund with a similar strategy, while some others with more seniority might even start their own fund.
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