How to Tell a PE Firm is the Right Fit
Hello All,
Having final day interviews with a few LMM / MM Tech PE firms in the next few weeks. Was wondering if anyone could provide insight into important things to look for and informative questions to ask during interviews. Most of the firms I’m looking at are 20-40 person investment teams, so hoping to diligence as much as I can about each firm.
Also, maybe a separate follow up question but would be helpful to know, how hard / easy is it to go from say a firm with a flagship of ~1-2B to one with ~$10-15B? Is the name brand / fund size important when trying to lateral as an associate / senior associate? Is it more on the training / experience / investment experience you get during your two years?
Really would appreciate any help or insights. Trying to navigate off-cycle recruiting from a non-tech group, so hard to ask my MD or team on their thoughts on a firm.
Been wondering this too. How do you know if a team has good culture or people when interviewing from outside, especially if you don’t know anyone who actually works in the group beforehand who can elaborate in detail what the group is like?
Also curious ^
As a rule of thumb assume you will not be able to go up in fund size. Obviously some exceptions but don't count on it. 1bn to a 15bn is a huge jump
Thanks - to give a quick example, you’re saying it’d be extremely difficult to go from an Accel-KKR to a Bain Tech Opps or Thoma Bravo?
Please feel free to chime in here
Akkr is bigger than tech ops so not out of ordinary. But Akkr to flagship at TB is not really realistic
The original question was about 1-2B fund to 10-15B fund which is basically going from LMM/MM to MF (+/- a little) and is basically impossible unless super connected and/or diversity and even then very very unlikely.
The example about AKKR to Bain Tech Ops is not equivalent example since AKKR latest flagship was ~5B and latest BC Tech Ops fund was 2-3B. Someone from AKKR could move to BC TechOps (would be a downgrade imo) if they were looking to hire directly into that team. However someone from AKKR would have trouble moving into BainCaps core North America private equity team (NAPE) which is usually what people are thinking about when they say BainCap and is also where majority of their PE aum lives.
Ofc neither of those scenarios match to going from 1-2B fund to 10-15B fund which would be like trying to go from some random LMM/MM to Advent or something which would be incredibly hard.
What about moving from a LMM/MM to an UMM firm? Trying to do this right now, my current firm has been around for a while and has a strong brand name. Is this realistic or should I lower my expectations?
Think some of the vectors are:
1. Ask their perspective on an intellectual question. Could be about the market, PE industry, strategy of PE firms, investing in a certain industry, types of LBOs, etc. Then, challenge the response you get (if something comes to mind). Their response will tell you whether the culture is more one of intellectual honesty (“academic” sometimes people call this) or more sharp elbowed / performative.
2. Is it a carry track role or 2/3 & out? What are you looking for?
3. Industry focus and check size range
4. Location
5. Generally - does talking to the team make you want to blow your brains out? This is definitely true at some firms.
Hard to swim upstream as others have said
Saw someone that went to TB from a super small MM
flagship or discover/explore?
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