Five Elms Capital
I am wondering what the sentiment is on Five Elms Capital in Kansas City MO. Saw that they are raising again with an $850M target (huge given that they started with 21M in 2007). I am wondering about the work and quality of people there. Also comp too. Thanks!!
Based on the most helpful WSO content, Five Elms Capital seems to have a mixed reputation. They are known for hiring straight out of undergrad and grooming their people for career track roles. They have a large team relative to their fund size, and they are committed to a unique sourcing strategy, which is said to be quite legitimate.
However, there are some red flags to consider. The company culture has been described as a "work hard, play hard" environment, and there are indications of an inner circle culture. There has been a significant amount of turnover in the past year.
In terms of compensation, it's been mentioned that they drastically underpay their people, possibly worse than 50% under market. For instance, $75K for an Investment Committee role is considered normal, but be prepared to work 80+ hours consistently.
Remember, it's always a good idea to do your own research and reach out to current or former employees if possible. This can give you a more comprehensive understanding of the company.
Sources: Five Elms Capital - Reputation, Comp, Exit opps, etc?
Heard that they pay well below market (50%+ lower), which makes sense since they have a huge team for a very small fund and is quite bloated at the junior level. Heavy sourcing if you're a junior with little to no diligence / execution work. Solid culture / WLB but tons of turnover at all levels due to terrible pay. Saw from an older post that they pay $75k total comp with no bonus, which is just horrendous even for Kansas City.
People there seem to come from untraditional backgrounds, with many joining without any legit IB/PE experience. Quality of people there is definitely lower than comparable shops. This also makes sense since they probably have trouble finding good talent when offering subpar pay.
Returns-wise, they invested a ton of capital at peak valuations when rates were low and the sector they're focused on (high-growth software) has seen valuations plummet since the rate hikes. In contrast, firms that invested in more mature-stage software companies are faring relatively better in this environment. Would try to stay away from this place if you have any better options.
Alternatives in mind?
this comment is hilariously on point. place looks like a clown show
I have a friend who works here. Can't speak to returns or performance of the fund, but I know he is making more than $75k. I believe for the first year it is $85k base, $15k signing bonus, and up to $20k performance bonus, so the all-in for year one could be $120k, which is certainly still below market, but I'd imagine solid for a less popular tier 2 city like Kansas City. Not sure what rate the bonuses pay out, but certainly better than the $75k mentioned here regardless.
From someone who got a first year offer here but ultimately decided to go another way. All in for a first year is $120 and a first year associate is somewhere in the ballpark of $180. They have great returns but I'd be very curious to see how they perform from here on out as they try to increase check size while still wanting to play in the same area of the market. As an analyst it is a pretty heavy sourcing shop but hours didn't seem all that bad relative to other first year spots in banking. Culture seems pretty much what you'd expect for a midwest shop.
analyst comp seems great for the geo. associate seems a bit low - would have expected expect 200 tbh.
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