Investing role at a 1 year old holding company, pros/cons?
Hello everyone,
I currently have slightly under 1 year of experience in business valuation in a large city (SF/NY). I will likely receive an offer soon for an analyst role at a pretty new (1-year-old) holding company that is a spinoff/owned/sponsored by a middle-market PE firm. They have a 5-7 year holding period and their portfolio already has an aggregate revenue of ~700 million. It's a very lean team (around 5 people including the CEO and CFO) and I would be reporting directly to the CFO. I would be working alongside the private equity folks at our PE sponsor to identify/acquire firms primarily across South America to aggregate/consolidate businesses in our (niche) sector. We would be based in the US but the firm seems to be executing an aggressive roll-up strategy to consolidate a fragmented industry primarily in South America but also in Europe and the US. They did also briefly mention that I may also take on other noninvesting-related responsibilities.
I am not familiar with the pros and cons of working as an analyst at a holding company. How does it compare to private equity or even corporate development? My understanding is that the experience would be a hybrid of the two. Does anyone have any insight into whether the role would be worth taking? I recently turned down a boutique IB job to focus on making a lateral move to MM IB, but this does seem like a very interesting opportunity.
The negatives would be my lack of interest in the sector and the focus on the South American market. What would the exit opportunities be for a role like this? What would the likelihood be of transitioning into a traditional PE role at our PE sponsor since I'd be working alongside them? Before this goal my plan was to transition from my valuation role > mm IB > Corporate Strategy.
Any advice/insight would be appreciated, thanks!
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