Determining lean or heavy headcount at PE Firm $/headcount
How do you determine if a team is lean or heavy headcount wise?
What should you aim for?
- Do you first determine the most recent fund raised? This would segment the fund into LMM/MM/UMM/MF
- See how large the checks are
- Count the number of senior people, Principal +
- Divide and get a $/Senior Lower ratio depending on LMM/MM/UMM/MF would mean less economics per person
It could also equate to more work since there are more seniors, each senior would want to chase their own deal and if there are not enough associates/VPs you could be working long hours
Have you seen any ridiculous $/headcount ratios high or low? I am sure they exist at HFs but what about PE?
How do you think about this as an associate evaluating different firms?
Would you be wary of joining a firm with too many associates? (Hard to get promoted as you are competing against others, not getting enough reps, etc)
Bump
Interested to see thoughts.
Another point not mentioned would be to check strategy. Is it clear that a key focus is buy and build? Likely much more work to go around.
Doloremque odit totam ad aperiam a delectus excepturi. Et dignissimos quia quidem vel beatae sed. Adipisci saepe distinctio sed et sapiente pariatur.
Et est et neque et quisquam. Aut sed sit tempora fuga. Accusamus aliquam ut voluptas voluptatem voluptatem dignissimos. Modi qui laudantium labore officiis maxime ipsam dolor voluptatem. Unde voluptas tenetur et natus.
Et aut autem voluptate nobis. Est adipisci aliquam cum incidunt possimus explicabo hic.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...