Is anyone familiar with software consolidators and the comp structure / upside?
Some names include Upland, Constellation, and Tyler. Basically they invest in smaller software businesses (5 - 50M), with specific investment criteria and buy and hold indefinitely. I am curious what the upside is for an investment director / partner here since it isn’t a carry model. Comp seems to be largely based on the amount of revenue you bring in via acquisition. It’s basically like a massive platform with minimal integration? Any info is helpful.
If Consellation is as cheap with their acquisitions as they are with their comp, I wouldn't expect much :)
Love the business, smart people, would hate to work for them. I think of them as the Walmart of the tech world.
I've heard comp is low at Constellation and being in Canada makes it possible, its why they don't move their M&A/corporate development offices to the US. It has gotten so big now that people within the firm under different operating units end up trying to compete for each other's prospective target. Not the worst place to be but if your focus is comp then better to look someone else imo.
Comp isn’t the most important thing to me at this stage in my career. The pay is still good (like 250k GBP all in w/bonus), just not sure if there are lateral options to other places or it pigeon holes you. Do you know about the potential upside? Aquiline has portcos that are basically the same and they grow and exit, I just don’t know how much of that is tied to comp package at this stage.
I’ve heard people leave to other corporate development teams at different firms. I’ve also seen some join PE funds that focus on tech or the vertical they were working on. But keep in mind PE exit is not the norm, usually it’s just corpdev/m&a at another firm. I’m talking about constellation but could be different for other firms. You also have to be careful what kind of team you’re joining as some teams will focus exclusively on sourcing and portfolio management and m&a is done by a separate team while other teams do everything under one umbrella.
have heard great things about WLB and pretty good people working there. don't know why they would not want to implement some type of carry model to incentivize employees though
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