Interview with LMM Family PE office
Interview with LMM PE Family Office
I have an interview with a PE family office on Monday. It’s very small, with just an MD and the founder, but based on salary + bonus and research I’ve done on the guy it probably >$400m AUM if I had to guess. They do a bit of manufacturing and retail business, and some real estate. The guy is an energy guy but from what I can tell the fund itself doesn’t do any true energy deals per say.
They told me the interview will be about 90 minutes. Anyone have any advice on what to expect? I don’t come from PE / IB background (senior big4 deals TMT), and during my initial interview MD didn’t ask anything technical. I guess I’m at a bit of a loss with regards to how to best spend my time (technicals, LBO/DCF, etc.), given it’s a bit unstructured and given it’s LMM I am struggling to think how they plan on filling the 90 minutes after 30 minutes of “get to know your story” questions
Any advice?
I’m currently at a similar type firm. Family office direct investment arm with AUM under 400 mn in total across all baskets of family office. I had several different rounds but a lot was behavioral since team is lean. I did have a basic case study that was them sending me a CIM of a deal they looked at the night before the second round and I had to do a quick and dirty analysis and try to come up with comp estimate. I was asked to take a position and then had to defend it. I also was tested to see if I could get on board if MD or founder was for/against deal. I came from a non traditional background and my team for the most part aren’t the traditional PE guys/gals so it was different for me.
What did actions / processes did you take to perform the comp with the CIM you received?
So it was a super random niche company. I think it was something like bamboo (or some sort of eco friendly) wholesale office furniture, it was a true lmm business so public company were out. I interned at a search fund years ago so I was on the website searchfunder and they have free valuations for different industry's so I used that. I also knew that small family businesses in non sexy industries trade for between 3-6x so I said I would pay 4-5x EBITDA. I received the feedback the sellers expectation was 5x so I was in line. The key things were being able to think outside the box like I pitched could finance it with eco bonds due to their "green status", or pivot to also sell to schools not just offices. It was more about being able to think critically. I will say they didn't dig into my modeling ability and that was a flaw because I could have been a dud and they would have been screwed. I also had to hand hold a bit through a couple deal negotiations as some team members were green. I would make sure you have good leadership and that they are willing to spend some money on resources. The opportunity I found myself in has some chaos and downside but the upside is massive. Happy to answer any other questions as there isn't much about lmm family office PE here.
Is this in Dallas?
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