Experiences working at LMM and MM startup PE funds?
Does anyone have experience working with startup funds in the LMM and/or MM? I will be interning for a middle market PE fund this spring, and I am essentially dead set on working at a LMM or MM PE fund. I find these firms to be more interesting, as you get a larger role in the deal process (depends firm to firm) and you get to work more with your portcos, something that I find interesting as someone interested in scaling and operating businesses.
I was just wondering what career progression may look like at a newer fund that has only raised one or two funds, if anyone has experience working at a fund like this (out of college, after an IB analyst stint, or post-MBA). I am sure that career progression throughout the fund would be faster, however, I am sure it depends on the firm.
What does the recruiting timeline usually look like for these firms (do these funds usually do off-cycle recruiting)? Do startup funds typically hire analysts directly out of college? How can I stay up to date with these new funds / spin-offs of other larger funds (I'm assuming Pitchbook would be a good place to start)? Any insight into these questions would be very helpful. Thanks!
Based on the most helpful WSO content, working at startup funds in the Lower Middle Market (LMM) and Middle Market (MM) can indeed offer a more hands-on experience in the deal process and portfolio company management. Here's what you might expect regarding career progression and recruiting at these types of funds:
Career Progression: - Speed: Career progression at a newer fund can be faster due to the smaller team size and potentially more opportunities to take on responsibility. - Variability: It greatly depends on the success of the fund's investments and the fund's ability to raise subsequent funds. - Roles: You might start as an analyst or associate and could potentially move up to a senior associate or VP position if the fund grows and you prove your value.
Recruiting Timeline: - Off-Cycle: Many LMM and MM PE funds recruit off-cycle, meaning they look for candidates as the need arises rather than on a strict annual schedule. - Direct Hiring: It's less common for startup funds to hire analysts directly out of college; they often prefer candidates with some IB or related experience. - Networking: Building a network and getting referrals can be crucial since these funds may not have formal recruiting processes.
Staying Up to Date: - Research Tools: PitchBook is indeed a good resource for tracking new funds and spin-offs. Other tools include Preqin, Capital IQ, and networking through industry events. - Networking: Stay connected with professionals in the industry, attend PE-related events, and join relevant forums and groups.
Remember, while working at a startup fund can be exciting and offer rapid growth, it also comes with risks such as fund performance and stability. Always do your due diligence on the fund's track record and management team before committing.
Sources: https://www.wallstreetoasis.com/forum/hedge-fund/quant-hedge-fund-career-progression?customgpt=1, https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1, 20 Most Frequently Asked Questions - London Edition, Troubled fundraising processes, Q&A: 2nd Year Associate at a VC fund - Breaking in With a Fund of Funds + IB background
At a LMM first time fund right out of college. Terrific experience for the reasons you mention (good deal exposure and deal responsibilities, culture, growth). Lots of portco work and no real HR/IR/admin make it a rougher job than other gigs but need to just push through it if it’ll be worth it.
Can’t offer much in the recruiting side, my fund had a super day on campus at my school the fall of senior year and it was a good fit.
Dolores dolor quidem aspernatur temporibus. Sit quisquam illo aut nesciunt qui. Tempore enim accusantium veniam qui voluptatem nemo. Autem omnis itaque et est nam corrupti.
Corrupti pariatur quasi est autem quia. Ea ut pariatur ea voluptatum est tenetur. Quidem sed ipsa magnam mollitia unde soluta.
Similique cupiditate excepturi quo vel nulla consequatur rerum. Quisquam delectus corrupti itaque rem. Cupiditate perferendis repellat officiis sed vero aut adipisci sapiente.
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...