Does anyone have any insight into the attractiveness / probability of success to this path? Curious on attractiveness vs. staying in PE from a comp / lifestyle / career trajectory perspective.
Thanks in advance for any info
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PE to Portco path, particularly if you join a hands on / operationally focused fund is possible.
The question is whether those types of shops like to hire from an IB or MC background?
Also would suggest targeting a smaller PE fund as bigger PE funds with bigger PortCos can afford higher quality management. So if they can choose between someone with significant demonstrated experience vs unproven then that might be more challenging.
Payoff wise, if you pick the right portco then you have single asset exposure and presumably you’ll be on the management equity plan. The real prize would probably come from either a) getting more senior and getting more of the management incentive in PE back companies over multiple instances or b) joining a company before PE is involved and getting two bites at the cherry with the same company (one when PE first buys in and one when PE exits)
Thank you, very helpful. No plans to target a large fund so not worried there.
I (think) I am also comfortable taking the exposure to a single asset given it will hopefully be relatively early in my career and the nest egg from IB + PE. But also don't have a desire to slog it out in PE as a career dealmaker.
Thanks again.
The advantage of going IB > PE > Portco rather than IB > PortCo is that you'll have a better appreciation for the types of businesses that have a higher probability to generating significant equity returns over a short time period.
The other thing to keep in mind is that you do get to re-up with the existing portco when it changes hands as the incoming buyer usually refreshes the MEP to keep existing management.
Understood. I have a long way to go in understanding the dynamics of a deal well enough to learn the patterns of success. That + the desire to define and refine a personal investment strategy has me actively recruiting for PE. Just don't see that as a long term career fit.
Thanks again man.
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