Growth / Tech PE funds with enjoyable culture? Do they exist?
Finishing up my Associate stint at a UMM PE shop focused on tech and headed to HBS/GSB in the fall. Post-MBA I'm looking to stay in tech investing, either Growth or Tech-focused PE, but I need to switch shops. My Associate experience has been pretty brutal - not just from an hours standpoint, but even more so from a culture POV. I'm talking regular verbal abuse, VPs who create low-value weekend work "just in case" a deal heats up, a requirement to fill your down time by hitting sourcing goals so you're never working less than 80 hours a week even when not on a live deal, and a general transactional culture where I've been here almost two years and don't feel like I have a personal relationship with anyone I work with (outside of fellow Associates).
Does anyone have any intel on Growth / Tech PE funds that offer a more reasonable culture than what I described above? I really like investing and I have no problem working 100+ hours during live deal times, but I'd really like to do that with people I actually like being around that have reasonable expectations and allow people to take some down time working idk 65 hours a week when not in the throws of a live deal?
I'm open to SF, NYC, and Boston. I know there was a similar post on this topic a bit ago but that poster was mostly focused on NYC and had some restrictions on pay. I don't really care about pay all that much because I figure I'll make more in the long run by going to a place I can actually sustain vs. another shop I'll burn out of at VP.
FWIW I saw Insight, Brighton Park Capital, Lead Edge, and Silversmith mentioned in that thread. Would very much welcome other thoughts!
I’ve heard insight is extremely miserable
Who lied to you??
I just matched with an insight girl (her 1st year out of school) on bumble and her opening line was something about never having free time as a VC. I can’t relate lol.
Lol, some people call sourcing or sales roles a grind. It's only a grind if you don't like talking to people. No way she is working more than 60 hours.
Yeah man idk. Maybe she never did any stints at a real grindy spot but usually insight is pretty particular about who they hire across the board. I do sales and outreach it’s really fun to me. Major turn off to open with talking about work tho get that off the app please haha.
Can you break down what your daily/weekly looks like in terms of what you actually do to source/sell? I like to think I’d really enjoy it and maybe even be good at it but sales, to your point, is often described as a grind. To your point again, this often comes from the same people that think it’s more fun to be structuring and “analyzing” deals, which to me is boring as all fuck. I much prefer speaking to entrepreneurs, hearing their stories, understanding unit economics, demand drivers, etc. but have some hesitancy about jumping into sales oriented roles again given the stigma.
Everyone here always talks about the MF or the BB life as the standards. I think specifically in the growth/VC space you don’t really need to be at a “top” shop to pull big bucks.
Working at a place thats not stepstone or sequoia but consistently punches above their weight and is a place where everyone gets a long and likes to go out is better than killing yourself for the big brand name.
It's because some people want to be miserable model monkeys instead of building upon their qualitative skills. You're going to have to sell or source as a senior investor, might as well go someplace where you do it early.
This is probably true at the junior level but VC returns are the stickiest of any asset class. 10:1 odds Sequoia et al outperform for the foreseeable future and senior comp is a function of performance.
Do you have any insight into the first year comp for an analyst in GE?
Not particularly sure. But I am sure there’s some standardized stuff at large ge firms or pe firms like pincus with a ge team.
It appears like there are a lot of medium sized VC/GE funds out there punching way above their weight and succeeding. Each firm culture is different. The job at the fund can really change the comp too if you’re on an investment team vs the sales team vs the bd/fundraising team.
I would say these firms are far better culturally than what you describe in the firm you're leaving. Growth for whatever reason (with maybe the exception of the mega-funds like Insight) just hasn't adopted the same PE culture. However on the point of the efficient market hypothesis, these smaller-cap PE funds ($1bn so maybe not Brighton Park or Lead Edge) that definitionally have more limited economics are not able to attract the same caliber of people as you get at a tier-1, larger-cap fund like an A16Z, Blackstone, etc. So while you do get the better culture (which is great), you lose on economics, ability to learn, etc. No perfect answer.
Does anyone have insight into Brighton Park?
Believe it was a somewhat rocky start - few early hires that weren't the right fit. Now seems much more streamlined. Anecdotally word is F1 portfolio has done well too, so F2 shouldn't be difficult to raise. Culture is good, but Greenwich location is tough.
Lost a co-founder to THL recently...
Not flexible w/ Greenwich days and a facetime culture. Hours could be worse but everyone works hard and expects high quality, high velocity work with tight deadlines. There isn't really anyone to help you at the lower levels (rare to be double-staffed, VPs on up are not in the weeds), so it leads to a lot of hours worked. Pro is a "fast learning curve", etc. Lot of time spent in diligence on items that won't materially move the needle. Heard returns are mediocre at best, but TBD. Heavy on sourcing culture at all levels, which creates a competitive environment, even though in reality, it is rare to source an investment from a cold email. Claim this is "entrepreneurial" and I suppose the right person could thrive with this.
Insight on Lead Edge? Heard comp is really good with stellar track record for fund performance.
Bump
They do some great deals and the partners are a smart group. Also will promote quickly for good people who prove themselves early.
Definitely not ICONIQ.
Can you say more? Was going to target them
for post MBA
bump
What is bad at iconiq? The hours? Or the culture? Or both? Would really appreciate any insight.
What about TA ?
Have heard good things about TPG Growth and Dragoneer if good with SF
Say more? Is Dragoneer buy on revenue/ARR sell or revenue/ARR or sell on EBITDA or what?
Dragoneer buys on NTM Revenue usually with interesting pref structure for downside protection. Usually enters pretty late stage and exits through IPO but often holds it even after IPO.
Team super lean, but heard it is mostly driven by the top dog and very much a one man show.
Dunno about TPG Growth culture but TPG Growth team also cross-staffed on TPG Rise (impact fund) deals, which is pretty neat.
Vista
LOL not Vista
Could you elaborate more? Was def targeting them
A
Sorry to hijack, just quickly curious how you thought you were able to separate yourself for Harvard / Stanford assuming you’re an ORM male? Did you get into both and did most of the associates at your fund?
Yeah I'm a white dude. I was top bucket at my MBB and also her at my UMM, so I'm sure that helped. Strong GPA, GMAT above the school median, etc. I don't think I had a real "hook" necessarily, just crafted a story about wanting to invest behind building the future (hence the switch to growthier investing)
Hi, I'm not as accomplished as your are in the world of IB or PE, but just a thought:
Pretty sure "downtime" doesn't mean 65 hours a week... I think 20 hours a week is downtime...
Can you name drop where you work at some point so we know not to fuckin touch it
Wish I could. Unfortunately even UMM firms are pretty small and I would get crucified if this post got back to me.
If you’re comfortable sharing by PM, I would like to avoid this place
I know this is a relatively old thread, but piggybacking on wvu's request and also ask that you PM me as well your shop if you're comfortable. Hoping to enter growth down the line and would like to dodge a shop like this
I'd recommend looking into AKKR, Spectrum, and Thoma Bravo. From an hours standpoint it's tough but the team cultures at these places seems to be good.
I had a phone screen with AKKR and the first thing this guy told me was “we work really hard, how do you feel about that? How are your current hours”
like bro what the fuck.
Sorry to hear that, the associates and VPs that spoke to me seemed really nice though so I'm just speaking from my own experiences.
associate or VP?
Id rather this than kids going in blind and burning out
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