Micro PE

Hi All,

Been doing corp M&A for large publicly companies for the majority of my career. Interested in moving into the Micro PE space. Does anyone have insight into where you can find job postings for these types of roles or if there are any recruiters focusing on this space?

Thanks!!

8 Comments
 

Based on the most helpful WSO content, transitioning into the Micro PE space often requires a targeted approach since these firms are typically smaller and less visible than larger PE firms. Here are some actionable steps:

  1. Networking: Micro PE firms often rely on referrals and networking rather than public job postings. Leverage your existing network in corporate M&A, attend industry events, and connect with professionals in the Micro PE space on LinkedIn.

  2. Recruiters: While there are fewer recruiters specializing in Micro PE, some boutique executive search firms may focus on this niche. Research recruiters who specialize in private equity or smaller investment firms.

  3. Job Boards: Platforms like WSO’s job board, LinkedIn, and niche finance job boards may occasionally have postings for Micro PE roles. However, these opportunities are often not widely advertised.

  4. Direct Outreach: Identify Micro PE firms that align with your interests and directly reach out to them. Tailor your resume and cover letter to highlight your corporate M&A experience and how it translates to value in the Micro PE space.

  5. WSO Resources: Utilize templates like the Private Equity Resume Template available on WSO to ensure your application materials are optimized for PE roles.

If you're looking for more specific advice or connections, engaging in WSO discussions or reaching out to members who have made similar transitions could be highly beneficial.

Sources: My PE Recruiting Process, https://www.wallstreetoasis.com/forum/private-equity/private-equity-private-investment-divisions-minneapolis-stpaul?customgpt=1, Women in Private Equity?, From Private Equity Associate to VP in Private Equity, My PE Recruiting Process

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

If you're truly asking ab the micro PE space (read, SMB space w/ EBITDAs $0-$2mm) I am personally familiar with the space and you're welcome to PM me.

It doesn't really work like that, there aren't really recruiters, no processes etc. Its a human/relationship centered space, you have to get together with other guys, find the deals yourself and raise the capital yourself, sometimes on a deal-by-deal basis from banks or a fund that backs searchers. That's what makes the space attractive, its fly by night renegades calling friends, banks etc. Target companies often have little or unreliable records and information making the DD process entirely different from what you might expect coming from "real" PE and dealing with professional-level clients who know the game. These sellers often have no concept of a deal process and can barely even speak to their financials etc. (mostly bc its operationally focused husband/wife couples, friend groups, etc. who just had a business idea and never had enough self-doubt to contemplate not executing). 

There are communities for guys who have a passion for the space and I've met a few guys from it.

However, the space has absolutely exploded in the last 10 years and really took off after COVID which is good bc and understanding of the asset class is more widespread than it was but its more saturated and the valuations can be artificially high as well due to everyone and their mothers flooding this space the last few years. 

Look into working for search funds, or for one of the many firms out there who back searchers (which sounds like what you may be looking for and I have a rough list I can share)

 

The ideal situation would be to form your own holdco, get together with a few guys, find a few targets and get a deal under LOI, then present it to one of these search fund backers and build a relationship w/ them w/ the understanding that they will continue to back you for every deal that you do on and on forever while you roll up your mini empire. You are functionally your own "GP" and your "LPs" are small business bank lenders and private capital providers.

As the SMB space "matures" in the eyes of capital providers it has been becoming much easier to structure capital in a way that is advantageous to the "GP"

Edit: not sure why my above comment was removed by the mod team but feel free to PM me for the supposedly forbidden information

 
Most Helpful

Here is a roughly cobbled-together list of smb lenders/search fund investors and backers who are keen with partnering with entrepreneurs/searchers/search funds

Main Street Capital Network Majority Search SIG Capital Partners Caprae Capital Search Capital Partners Cerebro Capital Capital Pad Smash Ventures Aspect Investors Anacapa Partners WSC & Company Endurance Search Partners Miramar Equity Partners Pacific Lake Moonbase Capital Housatonic Partners Peterson Partners Riviera Capital Workbench Capital  Feta Fund Fruition Capital Hardin Family Holdings RCR Family Office? LP First Capital Bardo Capital Sam Rosati Gregg Brooks Max Spiegel Richard Bouchard Anacapa Partners Bradford Brown Cambria Group Double R Partners Futaleufu Partners Graue Mill Partners Housatonic Partners Kinderhook Partners M2O  Ohana Capital EtA Club Pacific Lake Partners Peterson Partners Relay Investments RHV Capital Search Fund Partners Trilogy Search
 

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