Growth Equity - How to answer “have you done a deal”…if I haven’t

1st Yr GE Aso. Joined my firm as an analyst, have worked my butt off, got promoted, but the combination of poor fundamentals in software and slower than expected fundraising and deployment at my firm (esp relative to headcount) has made it hard to do deals and I haven’t sourced one. I have worked on memos that have gone to IC and a follow-on check into a portco that went through.

I want to start talking to recruiters (who I’ve largely blown off my first couple of years) but want to go into those conversations prepared. I know deals and deal-related questions will come up.

I know a bunch of folks in VC and growth are in a similar situation, so I imagine this thread could be helpful. General recruiting advice for someone in this position is also helpful.

 

Based on the most helpful WSO content, here's how you can approach this situation:

Addressing the "Have you done a deal?" Question

  1. Highlight Your Contributions:

    • Memos to Investment Committee (IC): Emphasize your role in preparing detailed memos that were presented to the IC. Discuss the depth of your analysis, the strategic insights you provided, and how your work influenced decision-making.
    • Follow-on Investment: Talk about the follow-on check into a portfolio company (portco). Detail your involvement in the process, the rationale behind the follow-on investment, and any due diligence you conducted.
  2. Focus on Skills and Experience:

    • Analytical Skills: Highlight your strong analytical skills demonstrated through your work on memos and follow-on investments.
    • Market Understanding: Showcase your understanding of market fundamentals, even if the market conditions were challenging.
    • Team Collaboration: Discuss your ability to work effectively within a team, contributing to the overall success of the firm despite not having sourced a deal.
  3. Contextualize the Challenges:

    • Market Conditions: Explain the poor fundamentals in the software sector and how it impacted deal flow.
    • Fundraising and Deployment: Mention the slower-than-expected fundraising and deployment at your firm, providing context for the lack of deal sourcing.

General Recruiting Advice

  1. Network Strategically:

    • Leverage Connections: Use your network in VC and growth equity to get introductions to recruiters and hiring managers.
    • Informational Interviews: Conduct informational interviews to understand what different firms are looking for and to position yourself accordingly.
  2. Prepare Your Story:

    • Consistent Narrative: Develop a consistent narrative that ties together your experiences, skills, and the market challenges you've faced.
    • Practice Responses: Practice your responses to common interview questions, focusing on your contributions and the value you bring to a team.
  3. Showcase Your Potential:

    • Growth Mindset: Emphasize your growth mindset and willingness to learn and adapt.
    • Future Contributions: Discuss how your experiences have prepared you to contribute effectively to future deals and how you plan to leverage your skills in a new role.

By focusing on your contributions, skills, and the context of your experiences, you can effectively navigate deal-related questions and position yourself as a strong candidate in the growth equity space.

Sources: My Private Equity Recruiting Process, "Walk me through a deal" for consultants, Q&A: Analyst --> Associate at a VC / Growth Equity Firm, https://www.wallstreetoasis.com/forum/real-estate/walk-me-through-a-deal-you-worked-on-interview-question?customgpt=1, https://www.wallstreetoasis.com/forum/private-equity/a-guide-on-how-to-navigate-on-cycle-pe-recruiting?customgpt=1

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I’m in GE and started as an analyst - recently lateraled to a different firm (ignore yr in my title). Good that you’ve brought things to IC and did a follow-on. What I did was talk through all the deals I brought to IC and sourced even if it didn’t close. Most of the time these other firms looked at the same companies so they’re looking to see if you can speak to your work on the deal and if you can think critically about whether or not it would’ve been a good investment. Similarly for the follow-on, would talk about what mattered in the re-underwriting process and how you approached it. Especially given the macro they aren’t expecting you to have a ton of closed deals

 

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