Cove Hill 2024

Any thoughts on Cove Hill in 2024? The idea of a long-term fund with an operational focus seems interesting to me since I feel like that's a solid longer-term possible strategy if executed properly. I saw they already exited one investment for what seems like a great IRR, but that was before the markets went to shit. So want to get an update on Cove Hill.

I am recruiting primarily for Boston seats, so would also love to get some insight into the views of some other MMs in Boston such as AVALT(similar focus as Cove Hill), Abry, and Baypine.

26 Comments
 
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didnt they raise fund 3 at 1.5B in exactly 4 years? dunno how that is bad fundraising given their size or whatever you are insinuating 

 

Super smart investors with really good returns. Unique approach with the long-term investing strategy / concentrated portfolio, but seems to have worked thus far. Definitely one of the stronger tech buyout shops in Boston

On the LP side and seeing this style of fund coming about more and more. Get in earlyish and actually own a company 8-10 years by design. Thesis is you can truly drive change at a company level that is sustainable and not just debt fueled growth or add-on out the ass inorganic growth.

 

They work really hard but from what I understand don't get a lot done in terms of actually closing deals post-covid, albeit if you're a big "long-term" shop it makes sense you're probably not making a bunch of swings in a given year. It will be sweaty as fuck and you probably won't get many reps in terms of actual investments, but they are quite thorough in doing diligence. I have 1 friend there who went through 5 expert calls and a week of busy work just to pass on something based on data they'd already been given beforehand from bankers. Pay is good though and I'd pick Boston over NYC/SF/LA every day of the week. 

"If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

More weighted towards base early. Don't know starting but ASO 2 is ~$200k +50-75% bonus I believe. 

"If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

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