Hi everybody,
I may have an opportunity for a position with a small private equity firm. Here are some details about their investment criteria:
- AUM: approx $350
- Dry powder approx $75
- ~10 active investments
Besides these metrics, what are some other things I can search for that would help me to determine if the firm is headed in the right direction and would be a good place to hitch my wagon to. Please let me know if I can provide any more details. Thanks!
Also very interested.
Firms track record Founders track record Who are LPs NAV of current portfolio Headcount Next fund target size
I'd also enquire as to their transaction sourcing model: ie a cold calling or otherwise.
Current fundraising efforts. If they are ~80% deployed, they should be actively raising capital for their next fund. If they are not fundraising, it would signal that they haven't liquidated enough investments or the fund returns aren't good enough to raise another fund.
Ask mentioned above, the important things I'd look at are
LPs Sourcing Founder Background and Track Record
In Addition I'd ask about
Fund/Investment Thesis - Make sure this is tight. I've found that good funds have strategies and know what they look for and how they're going to impact a business.
Vision for fund - Why did the founders leave their former (and presumably PE) jobs and what is their goal for the fund. Getting to be a Partner at a large PE fund is a pretty great place to be, so why did these guys leave.
Opportunity for your growth - This fund seems pretty small, so regardless of what level you're coming in at, you're going to have a lot of responsibility. What is your role going to be and what is their hope for you moving forward?
With a small firm size, are you likely to get a % of the carry- as an Analyst? Think 4-5 total people
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